Stanbic IBTC Holdings PLC 2017 Annual Report

200 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 201

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

23. Subordinated debt Group Company 25.Provisions Interest cost on
judgment debt
Subordinated fixed rate notes- Naira (see (i) below) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016 31 December 2017 Legal Taxes & levies Penalties & fines Total
Subordinated floating rate notes -Naira (see (ii) below) Nmillion Nmillion Nmillion Nmillion Balance at 1 January 2017 Nmillion Nmillion Nmillion Nmillion Nmillion
Subordinated debt - US dollar (see (iii) below) Provisions made during the year 1,541 1,000 - 10,581
15,636 15,609 -- Provisions used during the year 8,040 5,189 -
Provisions reversed during the year 250 (1,044) - 5,439
104 104 -- Balance at 31 December 2017 (96) - (1,000) - (1,140)
5,686 - (1,901)
13,306 12,251 -- Current (901) - 12,979
Non-current 7,293
29,046 27,964 -- -
31 December 2016 12,979
The terms and conditions of subordinated (ii) This represents N100 million Naira (iii) T his represents US dollar denominated Balance at 1 January 2016 ---- 12,979
debt are as follows: denominated subordinated debt issued term subordinated non-collaterised Provisions made during the year
on 30 September 2014. Interest is facility of USD$40million obtained Provisions used during the year 7,293 5,686 - -
(i) This represents Naira denominated payable semi-annually at 6-month from Standard Bank of South Africa Provisions reversed during the year
subordinated debt issued on 30 Nigerian Treasury Bills yield plus effective 31 May 2013. The facility Balance at 31 December 2016 7,293 5,686 - -
September 2014 at an interest rate 1.20%. It has a tenor of 10 years and expires on 31 May 2025 and is
of 13.25% per annum payable semi- is callable after 5 years from the issue repayable at maturity. Interest on Current 8,043 984 - 1,000 10,027
annually. It has a tenor of 10 years and date. The debt is unsecured. the facility is payable semi-annually Non-current 1,272 610 1,000 - 2,882
is callable after 5 years from the issue at LIBOR (London Interbank Offered (371) (53) (1,424)
date. The debt is unsecured. Rate) plus 3.60%. See note 36.3. (904) - (1,000) (904)
8,040 - - - 10,581
The group has not had any default of principal, interest or any other convenant breaches with respect to its debt securities during 1,541 1,000 -
the year ended 31 December 2017 (2016: Nil). - -
8,040 - - - 10,581
Movement in subordinated debt Group Company 8,040 1,541 1,000 - 10,581
1,541 1,000 -
At start of year 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Additions Nmillion Nmillion Nmillion Nmillion
Accrued interest for the year
Accrued interest paid 27,964 23,699 --
Effect of exchange rate changes [loss/(profit)]
Payments made -- --
At end of year
2,706 2,621 -- (a) Legal (b) Taxes & levies
24. Current tax liabilities In the conduct of its ordinary course of business, the group is Provisions for taxes and levies relate to additional assessment
(2 678) (2 512) -- exposed to various actual and potential claims, lawsuits. The on taxes, including withholding tax, value added tax, PAYE tax.
Current tax liabilities group makes provision for amounts that would be required to
1,054 4,156 -- settle obligations that may crystallise in the event of unfavourable (c) Interest cost on judgment debt
24.1 Reconciliation of current tax liabilities outcome of the lawsuits. Estimates of provisions required are based Provisions for interest cost on judgment debt relate to additional
Current tax liabilities at beginning of the year -- -- on management judgment. See note 30.4 for further details. liability that management estimates the group would be required
Movement for the year to settle over and above a judgment debt in legal cases where
Charge for the year 29,046 27,964 -- the group appealed a lower court decision but believes its appeal
(Over) / under provision - prior year is unlikely to be successful.
Payment made Group Company
Current tax liabilities at end of the year
31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Nmillion Nmillion Nmillion Nmillion

12,240 9,508 157 68

12,240 9,508 157 68

Nmillion Nmillion Nmillion Nmillion

9,508 8,727 68 60
2,732 781 89 8
13,058 2,389
8,981 328
(22) (296) - -
(10,304) (7,904) (2,300)
9,508 (320)
12,240 157 68

202 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 203

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

26. Other Liabilities 27. Classification of group financial instruments

26.1 Summary Group Company Accounting classifications and fair values
Trading settlement liabilities
Cash-settled share-based payment liability (note 31.11) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016 The table below sets out the group’s classification of assets and liabilities, and their fair values.
Accrued expenses - staff Nmillion Nmillion Nmillion Nmillion
Deferred revenue
Accrued expenses - others 13,250 19,078 - - 31 December 2017 Note Held-for- Loans and Available- Other financial Total carrying Fair value 1
Due to group companies (see note 36.3) 2,308 1,246 105 240 Assets trading receivables for-sale liabilities amount Nmillion
Collections / remmitance payable (see note (i) below) 6,163 4,581 1,071 258 Cash and cash equivalents 7 Nmillion Nmillion Nmillion Nmillion
Customer deposit for letters of credit 4,690 331 Derivative assets 10.6 Nmillion 401,348
Unclaimed balance (see note (ii) below) 4,735 5,445 - - Trading assets 401,348 11,052
Payables to suppliers and asset management clients 1,252 968 Pledged assets 9.1 - 401,348 - - 11,052
Draft & bank cheque payable 17 34,335 Financial investments 8 11,052 - - - 151,479
Electronic channels settlement liability 58,824 9,498 227 86 Loans and advances to banks 11 151,479 - - - 151,479 43,240
Unclaimed dividends liability (see note (iii) below) 47,077 41,420 146 40 Loans and advances to customers 12 10,769 - 32,471 - 43,240 316,641
Clients cash collateral for derivative transactions 1,766 Other assets (see (a) below) 12 - 316,641 - 316,641
Sundry liabilities 1,973 1,621 - - - - - 9,623
8,042 1,629 - - Liabilities 10.6 - 9,623 - - 9,623 353,431
2,007 1,611 7 12 Derivative liabilities 9.2 - 372,088 - - 372,088
4,344 1,540 - - Trading liabilities 21 - 349,112 - 41,427
1,475 5,527 - - Deposits from banks 21 173,300 41,427 41,427 1,328,241
22,443 7,112 1,475 1 540 Deposits from customers 23 824,486 1,346,898
14,169 - - Subordinated debt 22 2,592
191,517 136,740 280 262 Other borrowings 2,592 - -- 2,592 62,449
4,563 3,406 Other liabilities (see (b) below) 62,449 - -- 62,449 61,721
- - 61,721 61,721 771,152
Current 168,685 128,625 2,976 1,614 - - - 753,642 753,642 27,611
Non-current 22,832 8,115 1,587 1,792 - - - 29,046 29,046 69,984
191,517 4,563 3,406 - - - 74,892 74,892 186,827
136,740 - - - 186,827 186,827 1,182,336
- - - 1,106,128 1,171,169
65,041

(i) Collections and remittance payable (ii) Unclaimed balances include demand (iii) Amount represents liability in respect (a) Other assets presented in the table above comprise financial assets only. The following items have been excluded: prepayment,
includes N19.6bn (31 Dec 2016: drafts not yet presented for payment of unclaimed dividends as at 31 indirect/withholding tax receivable, and accrued income.
N69.3bn) relating to balance held in by beneficiaries December 2017. The assets held
respect of clearing and settlement for the liability are presented in (b) O ther liabilities presented in the table above comprise financial liabilities only. The following items have been excluded:
activities for over-the-counter foreign note 11 and note 15. deferred revenue.
exchange transactions.

204 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 205

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

31 December 2016 Note Held-for- Loans and Available- Other financial Total carrying Fair value 1 28. Fair values of financial instruments significant unobservable adjustments change classification from being an asset
Assets trading receivables for-sale liabilities amount Nmillion or assumptions are required to reflect to a liability or vice versa such as interest
Cash and cash equivalents 7 Nmillion Nmillion Nmillion Nmillion The fair values of financial assets and differences between the instruments. rate swaps, fair values take into account
Derivative assets 10.6 Nmillion financial liabilities that are traded in active the credit valuation adjustment (“CVA”)
Trading assets markets are based on quoted market Valuation techniques include discounted when market participants take this into
Pledged assets 9.1 - 301,351 - - 301,351 301,351 prices or dealer price quotations. For all cash flow models, comparison with similar consideration in pricing the derivatives.
Financial investments 8 14,317 - - - 14,317 14,317 other financial instruments, fair values instruments for which market observable
Loans and advances to banks 11 16,855 - - - 16,855 16,855 are determined using other valuation prices exist, Black-Scholes and other 28.2 Valuation framework
Loans and advances to customers 12 - 28,303 - 28,303 28,303 techniques. valuation models. Assumptions and inputs The group has an established control
Other assets (see (a) below) 12 - - 252,823 - 252,823 252,823 used in valuation techniques include risk- framework with respect to the
- - - 15,264 15,265 28.1 Valuation models free and benchmark interest rates, bonds measurement of fair values. This
Liabilities 10.6 - 15,264 - - 352,965 341,941 The group measures fair values using and equity prices, foreign exchange rates, framework includes a market risk
Derivative liabilities 9.2 - 352,965 - - 31,897 31,897 the following fair value hierarchy, which equity prices and expected volatilities and function, which has overall responsibility
Trading liabilities 21 - 281,126 - 1,013,775 1,002,752 reflects the significance of the inputs correlations. for independently verifying the results
Deposits from banks 21 31,172 31,897 used in making the measurements of trading operations and all significant
Deposits from customers 23 701,477 Specific valuation techniques used to value fair value measurements, and a product
Subordinated debt 22 Level 1 – fair values are based on quoted financial instruments include: control function, which is independent
Other borrowings 11,788 - - - 11,788 11,788 market prices (unadjusted) in active of front office management and reports
Other liabilities (see (b) below) 5,325 - markets for an identical instrument. • Quoted market prices or dealer quotes to the Chief Financial Officer. The roles
- - - 5,325 5,325 for similar instruments; performed by both functions include:
- - Level 2 – fair values are calculated using
- - - 53,766 53,766 53,766 valuation techniques based on observable • The fair value of interest rate swaps is • verification of observable pricing
- - inputs, either directly (i.e. as quoted prices) calculated as the present value of the
- - - 560,969 560,969 574,310 or indirectly (i.e. derived from quoted estimated future cash flows based on • re-performance of model valuations;
- - prices). This category includes instruments observable yield curves;
17,113 - 27,964 27,964 25,423 valued using quoted market prices in active • review and approval process for new
markets for similar instruments, quoted • The fair value of forward foreign models and changes to models
- 96,037 96,037 91,555 prices for identical or similar instruments exchange contracts is determined using
in markets that are considered less than forward exchange rates at the balance • calibration and back-testing of models
- 136,409 136,409 136,409 active or other valuation techniques sheet date, with the resulting value against observed market transactions;
where all significant inputs are directly or discounted back to present value;
- 875,145 892,258 898,576 indirectly observable from market data. • analysis and investigation of significant
• Other techniques, such as discounted daily valuation movements; and
1 Carrying value has been used where it closely approximates fair values. Fair value estimates are generally subjective in nature, Level 3 – fair values are based on valuation cash flow analysis, are used to
and are made as of a specific point in time based on the characteristics of the financial instruments and relevant market information. techniques using significant unobservable determine fair value for the • review of significant unobservable
Where available, the most suitable measure for fair value is the quoted market price. In the absence of organised secondary markets inputs. This category includes all remaining financial instruments. inputs, valuation adjustments and
for financial instruments, such as loans, deposits and unlisted derivatives, direct market prices are not always available. The fair value instruments where the valuation technique significant changes to the fair value
of such instruments was therefore calculated on the basis of well-established valuation techniques using current market parameters. includes inputs not based on observable Fair value estimates obtained from models measurement of level 3 instruments.
data and the unobservable inputs have are adjusted for any other factors, such
(a) Other assets presented in the table above comprise financial assets only. The following items have been excluded: a significant effect on the instrument’s as liquidity risk or model uncertainties, to Significant valuation issues are reported
prepayment, indirect/withholding tax receivable, and accrued income. valuation. This category includes the extent that the group believes that a to the audit committee.
instruments that are valued based on third party market participant would take
(b) Other liabilities presented in the table above comprise financial liabilities only. The following items have been excluded: quoted prices for similar instruments where them into account in pricing a transaction.
deferred revenue. For measuring derivatives that might

206 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 207

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

28.3 Financial instruments measured at fair value - fair value hierarchy Group Note Carrying amount Level 1 Level 2 Level 3 Total
The tables below analyse financial instruments carried at fair value at the end of the reporting year, by level of fair value hierarchy into 31 December 2016 Nmillion Nmillion Nmillion Nmillion Nmillion
which the fair value measurement is categorised. The amounts are based on the values recognised in the statement of financial position. Assets
See note 4.5 on accounting policies on fair value. Derivative assets - 14,317
Trading assets 11,854 5,001
Group Note Carrying amount Level 1 Level 2 Level 3 Total Pledged assets 10.6 14,317 28,303 - 14,317
31 December 2017 Nmillion Nmillion Nmillion Nmillion Nmillion Financial investments 9.1 16,855 251,247 - - 16,855
Assets 8 28,303 291,404 470 - 28,303
Derivative assets 10.6 11,052 - 4,805 6,247 11,052 Comprising: 11 252,823 19,788 1,106 252,823
Trading assets 9.1 151,479 143,195 8,284 - 151,479 Held-for-trading 312,298 11,854 1,106 312,298
Pledged assets 8 43,240 43,240 - 43,240 Available-for-sale 279,550 19,318
Financial investments 11 316,641 313,288 - 316,641 31,172 291,404 470 - 31,172
522,412 499,723 1,536 1,817 522,412 Liabilities 281,126 1,106 281,126
Comprising: 14,625 8,064 Derivative liabilities 312,298 - 19,788 1,106 312,298
Held-for-trading 173,300 153,964 167,053 Trading liabilities 5,325
Available-for-sale 349,112 345,759 13,089 - 355,359 10.6 11,788 5,325 11,788 - 11,788
522,412 499,723 1,536 8,064 522,412 Comprising: 9.2 5,325 - - 5,325
Liabilities 8,064 Held-for-trading 17,113 5,325 - 17,113
Derivative liabilities 10.6 2,592 - 14,625 2,592 5,325 11,788
Trading liabilities 9.2 62,449 52,451 - 62,449 17,113 - 17,113
65,041 52,451 2,592 - 65,041 17,113 11,788 - 17,113
Comprising: 9,998 - 11,788
Held-for-trading 65,041 52,451 12,590 65,041
65,041 52,451 - 65,041 There have been no transfers between Level 1 and Level 2 during the year. No reclassifications were made in or out of level 3 during
12,590 - the year.
12,590
28.4 Level 3 fair value measurement
(i) The following table shows a reconciliation from the beginning balances to the ending balances for fair value measurements in level 3

of the fair value hierarchy.

There have been no transfers between Level 1 and Level 2 during the year. No reclassifications were made in or out of level 3 during Derivative assets Financial investments Total
the year. Nmillion Nmillion Nmillion
- 1,106
Group (5,240) - 1,106
Balance at 1 January 2017 - 711 (5,240)
Gains/(losses) included in profit or loss - Trading revenue - -
Gain/(loss) recognised in other comprehensive income 11,487 - 711
Originations and purchases - - -
Day one profit / (loss) recognised - -
Sales and settlements 6,247 1,817 11,487
Write back of impairment - 502 -
Balance at 31 December 2017 - - -
Balance at 1 January 2016 - 604
Gains/(losses) included in profit or loss - Trading revenue - - 8,064
Gain/(loss) recognised in other comprehensive income - - 502
Originations and purchases - - -
Sales and settlements - 1,106 604
Write back of impairment -
Balance at 31 December 2016 -
-

1,106

208 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 209

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

Gain or loss for the year in the table above are presented in the statement of profit or loss and other comprehensive income as follows: 28.5 Financial instruments not measured at fair value – fair value hierarchy
The following table sets out the fair values of financial instruments not measured at fair value and analyses them by the level in the fair
Derivative assets Financial investments Total value hierarchy into which each fair value measurement is categorised.
Nmillion
Group Nmillion Nmillion Fair value Level 1 Level 2 Level 3 Total
31 December 2017 711 Nmillion Nmillion Nmillion Nmillion Nmillion
Other comprehensive income - 711 (5,240) Group
Trading revenue (5,240) - (4,529) 31 December 2017 401,348 - 401,348 - 401,348
(5,240) Assets 9,623 - - 9,623 9,623
31 December 2016 711 604 Cash and cash equivalents - - 353,431
Other comprehensive income - Loans and advances to banks 353,431 - 353,431
Trading revenue - 604 Loans and advances to customers 41,427 - 41,427 - 41,427
-- 604 Other financial assets 442,775 363,054
- 604 805,829 - 805,829
Liabilities - 61,721 -
(ii) Unobservable inputs used in measuring fair value Deposits from banks 61,721 - 771,152 - 61,721
The information below describes the significant unobservable inputs used at year end in measuring financial instruments categorised Deposits from customers 771,152 - 69,984 - 771,152
as level 3 in the fair value hierarchy. Other borrowings 69,984 - - 69,984
Subordinated debt - 27,611 -
Type of Fair value as Valuation Significant Fair value measurement Other financial liabilities 27,611 186,827 - 27,611
financial at 31 Dec 2017 technique unobservable sensitivity to 186,827 - 1,117,295 186,827
instrument Nmillion Discounted cash flow input unobservable input 31 December 2016 1,117,295 - - 1,117,295
1,817 (2016: 1,106) Assets - 301,351 15,265
Unquoted Discounted cash flow Risk adjusted discount A significant increase in the spread above the Cash and cash equivalents 301,351 - - 341,941 301,351
equities 6,247 (2016: Nil) rate risk-free rate would result in a lower fair value Loans and advances to banks 15,265 - - 15,265
Loans and advances to customers -
Derivative assets • Own credit risk (DVA) A significant move (either positive or negative) in Other financial assets 352,965 - 31,897 357,205 341,941
the unobservable input will result in a significant 31,897 - 333,248 31,897
• Counterparty credit move in the fair value. Liabilities - -
risk (CVA, basis risk and Deposits from banks 701,477 - 53,766 - 690,454
country risk premium) Deposits from customers - 574,310 -
Other borrowings 53,766 - - 53,766
• USD / NGN quanto risk Subordinated debt 560,969 91,555 - 574,310
Other financial liabilities 25,423 -
• Implied FX volatility 96,037 136,409 91,555
27,964 881,463 25,423
(iii) The effect of unobservable inputs on fair value measurement (sensitivity analysis) 136,409 136,409
The table below indicates the valuation techniques and main assumptions used in the determination of the fair value of the level 3 875,145 881,463
assets and liabilities measured at fair value on a recurring basis. The table further indicates the effect that a significant change in
one or more of the inputs to a reasonably possible alternative assumption would have on profit or loss at the reporting date.

Effect on OCI/Profit or loss

Valuation Significant Variance in fair Favourable Unfavourable
technique unobservable value measurement
input Nmillion Nmillion Fair value of loans and advances is estimated using discounted cash flow techniques. Input into the valuation techniques includes
interest rates and expected cash flows. Expected cash flows are discounted at current market rates to determine fair value.
2017
Unquoted equities Discounted cash flow Risk adjusted From (2%) to 2% 144 (127) Fair value of deposits from banks and customers is estimated using discounted cash flow techniques, applying the rates offered for
Derivative assets Discounted cash flow discount rate 360 (362) deposits of similar maturities and terms. The fair value of deposits payable on demand is the amount payable at the reporting date.

2016 • O wn credit risk (DVA) From (1%) to 1%
Unquoted equities • Counterparty credit
29. Financial instruments subject to offsetting, enforceable Accordingly, the following table sets out the impact of offset, as
risk (CVA, basis risk and master netting arrangements and similar agreements well as financial assets and financial liabilities that are subject to
country risk premium) an enforceable master netting arrangement or similar agreement,
• USD / NGN quanto risk IFRS requires financial assets and financial liabilities to be offset irrespective of whether they have been offset in accordance
• I mplied FX volatility and the net amount presented in the statement of financial with IFRS.
position when, and only when, the group and company have a
Discounted cash flow Risk adjusted From (2%) to 2% 80 (64) current legally enforceable right to set off recognised amounts, It should be noted that the information below is not intended to
discount rate as well as the intention to settle on a net basis or to realise the represent the group and company’s actual credit exposure, nor will
asset and settle the liability simultaneously. it agree to that presented in the statement of financial position.

210 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 211

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

Group Gross amount Gross amounts Net amounts of Financial Net amount Group Gross amount Gross amounts Net amounts of Financial Net amount
31 December 2017 of recognised of recognised financial assets instruments, Nmillion 31 December 2016 of recognised of recognised financial assets instruments, Nmillion
Assets financial assets1 financial liabilities presented in the Assets financial assets1 financial liabilities presented in the financial collateral
Derivative assets offset in the financial Derivative assets offset in the & cash collateral3
Pledged assets Nmillion statement of statement of collateral & cash Loans and advances to customers Nmillion statement of statement of
Loans and advances to customers financial position2 financial position financial position2 financial position Nmillion
collateral3 Group
Nmillion Nmillion Nmillion 31 December 2016 Nmillion Nmillion
Liabilities
10,840 - 10,840 (3,689) 7,151 Derivative liabilities 266 - 266 (266) -
10,768 Deposits from banks 6,900 1,966
11,865 - 10,768 (9,998) 770 7,166 - 6,900 (4,934) 1,966
33,473
- 11,865 (4,425) 7,440 - 7,166 (5,200) Net amount
Nmillion
- 33,473 (18,112) 15,361

Gross amount Gross amounts Net amounts of Financial Net amount Gross amount Gross amounts Net amounts of Financial
of recognised of recognised financial liabilities instruments, Nmillion of recognised of recognised financial liabilities instruments,
financial assets financial assets presented in the financial collateral
financial offset in the presented in the financial financial offset in the & cash collateral3
liabilities1 statement of statement of collateral & cash liabilities1 statement of statement of
Nmillion financial position2 Nmillion financial position2 financial position Nmillion
financial position collateral3
Nmillion Nmillion Nmillion Nmillion Nmillion

Group 1,851 - 1,851 (1,851) - (5,336) - (5,336) 266 (5,070)
31 December 2017 9,998 - -- --
Liabilities 4,425 - 9,998 (9,998) - - (5,336)
Derivative liabilities 21,121 (5,336) 266 (5,070)
Trading liabilities 37,395
Deposits from customer - 4,425 (4,425) -
Other liabilities
- 21,121 (1,838) 19,283 1Gross amounts are disclosed for recognised assets and liabilities that are either offset in the statement of financial position or subject to a master netting arrangement
or a similar agreement, irrespective of whether the offsetting criteria is met.
- 37,395 (18,112) 19,283 2The amounts that qualify for offset in accordance with the criteria per IFRS.
3Related amounts not offset in the statement of financial position that are subject to a master netting arrangement or similar agreement, including financial collateral
1Gross amounts are disclosed for recognised assets and liabilities that are either offset in the statement of financial position or subject to a master netting arrangement or a (whether recognised or unrecognised) and cash collateral.
similar agreement, irrespective of whether the offsetting criteria is met.
2The amounts that qualify for offset in accordance with the criteria per IFRS. The table below sets out the nature of agreement and the types of rights relating to items which do not qualify for offset but that are
3Related amounts not offset in the statement of financial position that are subject to a master netting arrangement or similar agreement, including financial collateral subject to a master netting arrangement or similar agreement.
(whether recognised or unrecognised) and cash collateral.

The table below sets out the nature of agreement and the types of rights relating to items which do not qualify for offset but that are Derivative assets and liabilities Nature of agreement Related rights
subject to a master netting arrangement or similar agreement. Trading liabilities ISDAs
The agreement allows for set off in the event
Nature of agreement Related rights Global master repurchase agreements of default
ISDAs
Derivative assets and liabilities, other liabilities The agreement allows for set off in the event The agreement allows for set off in the event
of default of default

Trading liabilities, pledged assets Global master repurchase agreements The agreement allows for set off in the event
of default

212 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 213

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

30. Contingent liabilities and commitments Group 31 Dec 2016 Company 31 Dec 2016 The approval received from NOTAP for the also ruled that the agreement between SIBTC is currently reviewing a number of
30.1 Contingent liabilities Nmillion Nmillion payment of US$10.3m under the affiliate SIBTC and SBSA by which the exported options that are designed to successfully
31 Dec 2017 15,620 31 Dec 2017 - software agreement (“ASA”) is related to technology was leased back to Stanbic separate its IT infrastructure from those of
Letters of credit Nmillion Nmillion the software sold to SBSA pursuant to the IBTC Bank was also illegal, null and void. SBSA. Any chosen approach would require
Guarantees 118,054 38,523 - - SPA. The legality of the SPA is the issue Below is a consideration of the accounting approvals from the Board, shareholders,
35,323 - before the Court of Appeal, Lagos Division implications. NOTAP and the CBN.
153,377 54,143 - - in Appeal No. CA/L/208/2016. The
transactions involved in the SPA will be The SPA agreement involved SBSA paying 30.7 Obligations not recognised on
Guarantees and letters of credit are given to third parties as security to support the performance of a customer to third parties. reviewed, determined and accounted for ZAR 189million to SIBTC to acquire transactions with pending regulatory
As the group will only be required to meet these obligations in the event of the customer’s default, the cash requirements of after the judgment of the Court of Appeal, the Finacle V1 software in 2012. The registration
these instruments are expected to be considerably below their nominal amounts. Lagos Division has been obtained. proceeds of the sale have since that time In compliance with the rules of the
been held in an interest bearing deposit Financial Reporting Council of Nigeria,
As part of the Federal High Court judgment account with SBSA. As at 31 December the group has not recognised in these
30.2 Capital commitments of the 14 December 2015, in the legal 2017, the balance in the account was ZAR financial statements its obligations under
case between Stanbic IBTC Holdings 261 million (made up of ZAR 189 million some agreements where regulatory
Contracted capital expenditure 789 596 26 - PLC and the FRC, the Court ruled that plus ZAR 72 million accrued interest up to registration was yet to be received as at
- the original sale of the Finacle banking 31 December 2017). SIBTC is yet to fulfill the end of the reporting year.
Capital expenditure authorised 17,252 8,841 2,067 software to Standard Bank of South Africa the full conditions of the SPA agreement
but not yet contracted - through the SPA was illegal, null and which will result in the release of the The details of the affected transactions and
void, because NOTAP’s approval to the deposit in escrow. the associated obligations are as follows:
18,041 9,437 2,093 SPA had not been obtained. The Court

The expenditure will be funded from the group’s internal resources.

30.3 Loan commitments adverse effect on the group. Where the 30.6 Finacle Core Banking software Contingent liability
As at 31 December 2017, the group had group envisages that there is a more than In 2012, SBSA purchased from Stanbic IBTC
irrevocable loan commitments amounting average chance that a claim against it will Bank PLC its Finacle banking software for Type of agreement Transferor Registration status 31 Dec 2017 31 Dec 2016
to N56.1 billion (Dec 2016: N30.2 billion) succeed, adequate provisions are raised a consideration of ZAR 189 million, which Pending Nmillion Nmillion
in respect of various loan contracts. in respect of such claim. See note 25 for sale was captured in a Sale, Purchase Pending
details of provisions raised. and Assignment Agreement (“SPA”) Software License Agreement with SunTec External 56
30.4 Legal proceedings submitted to the National Office for Business Solutions FZE as at December 29, Pending
In the ordinary course of business the 30.5 Update on the legal case between Technology Acquisition and Promotion in 2015.
group is exposed to various actual and Stanbic IBTC Holdings PLC and the 2013. Subsequently, an affiliate software Pending
potential claims, lawsuits and other Financial Reporting Council agreement was established with Stanbic Information Technology Agreement between External Pending 353 294
proceedings that relate to alleged errors, In November 2016, Stanbic IBTC IBTC Bank which related to SBSA licensing Stanbic IBTC Bank PLC and Infosys Technologies
omissions, breaches. The directors are Holdings PLC (“SIBTC”), the Financial back the purchased software to Stanbic Limited (Online Procurement Request) as at Pending
satisfied, based on present information and Reporting Council of Nigeria (“FRC”) IBTC Bank in consideration of the payment March 2017 Pending
the assessed probability of such existing and National Office for Technology of an annual license fee.
claims crystallising that the group has Acquisition and Promotion (“NOTAP”) Finacle ITMS Integration Programme (Cash External 46 148
adequate insurance cover and/or provisions reached a negotiated agreement on On 27 December 2013, NOTAP approved Management Solution): Agreement with Infosys
in place to meet such claims. some of the issues that are related to and registered the Affiliate Software Technologies Limited and Affiliate Software
the FRC regulatory decision. Pursuant License with a total technology fee not License Agreement Nucleus Software Limited
There were a total of 297 legal proceedings to such agreement, SIBTC’s appeal has exceeding US$10,324,286.70 expiring India.
outstanding as at 31 December 2017 been amended and a payment was made on 31 May 2015 (Certificate No. NOTAP/
(Dec. 2016: 282 cases). 198 of these were to the FRC. The appeal’s sole focus AG/FI/1280/12/217). An amount of US$ Finacle Production Support agreement between External 69 -
against the group with claims amounting to now relates to the alleged illegality of 9.6m was remitted to SBSA on account Edge Verve Systems Limited and Stanbic IBTC 85 -
N159.6 billion (31 December 2016: N158 the agreements between SIBTC and of this authorisation. Following the Bank PLC as at June 2017
billion), while 99 other cases (Dec 2016: Standard Bank of South Africa (“SBSA”). expiration of NOTAP’s approval for this 22 -
103 cases) were instituted by the group The appeal (as amended) is however still license, no additional accruals have been STANBIC-NG V3 Finacle Enhancement and External 424 -
with claims amounting to N18.4 billion pending before the Court of Appeal. The made in relation to the fees payable for Implementation agreement between EdgeVerve
(31 December 2016: N13 billion). FRC, which has amended its brief of appeal the use of the software, which situation Systems LIMITED and Stanbic IBTC Bank PLC,
in response to the amended appeal filed by has taken account of the Bank’s inability Nigeria.
The claims against the group are generally SIBTC, has also withdrawn its cross appeal to obtain NOTAP’s further approval on the
considered to have a low likelihood and its appeal against the injunctive orders said affiliate software agreement. Supplemental to the Master Agreement between External
of success and the group is actively of the Federal High Court. The appeal Wizzit Technologies and Stanbic IBTC Bank PLC
defending same. Management believes has been adjourned for hearing on 08 as at May 2017
that the ultimate resolution of any of the November 2018.
proceedings will not have a significantly Amendment to the Master Software License External
Agreement between Edgverve Systems Limited
India and Stanbic IBTC Bank PLC

214 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 215

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

Third party funds under management and funds under administration 31.2 Interest expense Group Company
Members of the group provide discretionary and non-discretionary investment management services to institutional and private investors.
31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Commissions and fees earned in respect of trust and management activities performed are included in profit or loss. Nmillion Nmillion Nmillion Nmillion

Assets managed and funds administrated on behalf of third parties include: Savings accounts 1,150 821 - -

Current accounts 4,694 701 - -

Call deposits 1,525 1,744 - -

31 Dec 2017 31 Dec 2016 Term deposits 21,679 18,294 - 97
Nmillion Nmillion
Pension funds Interbank deposits 4,450 2,790 - -
Unit Trusts / Collective investments 2,312,872 1,883,584
Trusts and Estates 400,928 86,743 Borrowed funds 5,826 5,258 1,095 -
Assets held under custody – custodial services 32,164 22,507
39,324 29,608 1,095 97
31. Income statement information 5,643,213 2,899,792
8,389,177 4,892,626 All interest expense reported above relates to financial assets not carried at fair value through profit or loss.
31.1 Interest income
Included in interest expense reported above is N2,710 million (2016: N2,224 million) from related party transactions. See note 36.3.
Interest on loans and advances to banks
Interest on loans and advances to customers Group Company 31.3 Net fee and commission revenue 59,430 52,918 1,491 852
Interest on investments Fee and commission revenue 3,606 7,113 - -
31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016 Account transaction fees 3,294 3,970 - -
Nmillion Nmillion Nmillion Nmillion Card based commission 5,417 2,944 - -
Brokerage and financial advisory fees 33,928 - -
2,340 1,200 -- Asset management fees 2,951 27,453 - -
Custody transaction fees 1,220 1,751 - -
61,284 54,910 -- Electronic banking 6,207 1,209 - -
Foreign currency service fees 1,703 6,562 - -
59,287 31,357 45 17 Documentation and administration fees 1,104 1,298
Other fee and commision revenue (341) 618 1,491 852
122,911 87,467 45 17 Fee and commission expense 59,089 (764) - -

All interest income reported above relates to financial assets not carried at fair value through profit or loss. Interest income for the year ended 31 December 2017 52,154 1,491 852
includes N129 million (December 2016: N80 million) relating to the unwinding of discount element of credit impairments.

Included in interest income is N438 million (2016: N184 million) earned from related party transactions. See note 36.3.

Interest on investments of N45 million (2016: N17 million) reported by the company relates to interest earned on money market mutual funds held by the company.

Other fee income for Group includes commission on sale of government securities, agency fee, account statement fee, funds transfer charges, salary processing and
administration charges, reference letter charges, and cash withdrawal charges.

Other fee and commission income for the Company of N1,477 million (2016: N835 million) represents fee income earned by the company from technical and
management service provided to subsidiaries.

31.4 Trading revenue 11,085 6,218 - -
Foreign exchange
Fixed income 18,849 5,548 - -
Interest rates
Equities (786) 3,563 - -

0 (3) - -

29,148 15,326 - -

Included in trading revenue reported above is a trading loss amount of N4,143m (2016: N5,136m) from related party transactions. See note 36.3 for details.

Trading revenue reported above includes trading income of N5,749 million (2016: trading income of N2,778 million) relating to derivative transactions. Included
in trading income / loss from derivatives is N9,598 million (2016: Nil) relating to unboservable valuation difference recognised during the year. As at year end,
unobservable valuation difference yet to be recognised amounted to N4,500 million (see note 10.7).

216 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 217

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

31.5 Other revenue Group Company Group Company

Dividend income 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016 31.8 Other operating expenses 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Gains on disposal of property and equipment Nmillion Nmillion Nmillion Nmillion Information technology Nmillion Nmillion Nmillion Nmillion
Others (see (b) below) Communication expenses
112 225 28,092 1,501 Premises and maintenance 5,984 4,751 - -
a) Dividend income was earned from the following investees: Depreciation expense 1,205 921 - -
Stanbic IBTC Pension Managers Limited 209 56 119 - Amortisation of intangible assets 4,517 - -
Stanbic IBTC Asset Management Limited Deposit insurance premium 4,129 4,023 308 229
Stanbic IBTC Ventures Limited 624 433 175 158 AMCON expenses (see (i) below) 4,204 - -
Stanbic IBTC Capital Limited Other insurance premium 46 - -
Stanbic IBTC Stockbrokers Limited 945 714 28,386 1,659 Auditors renumeration 2,482 33 - -
Stanbic IBTC Insurance Limited Non-audit service fee (see (ii) below) 5,034 2,382 - -
Stanbic IBTC Trustees Limited - - 20,912 - Professional fees 4,504 49 64
Stanbic IBTC Bank PLC Administration and membership fees 858 6 1
Other equity investments - - 2,000 800 Training expenses 340 647 - -
Security expenses 310 - -
- - 900 100 Travel and entertainment 19 - -
Stationery and printing 850 31 - -
- - 800 - Marketing and advertising 3,711 755 - -
Pension administration expense 1,139 2,103 - -
- - 280 520 Penalties and fines 1,484 726 - -
Donations 1,773 1,195 - -
- - 100 - Operational losses 1,182 1,280 - -
Directors fees 2,982 874 142 84
- - 100 81 Provision for legal costs, levies and fines (See note 25) 215 2,853 - -
Impairment of other financial assets 336 230 208
- - 3,000 - Bank Charges 38 - -
Motor vehicle maintenance expense 437 70 - -
112 225 - - Indirect tax (VAT) 122 -
Others 25 248 - 55
112 225 28,092 1,501 401 334 71 (211)
3,538 1,978 (114)
b) T hese include gains from investment of unclaimed dividends, investment administration charges, and distribution received from 3,068 914 692 430
liquidation of unquoted equity investments. 764 280
1,496 1,458
31.6 Credit impairment charges 27,981 20,272 - - 828 437
Net credit impairments raised and released for loans and advances (2,404) (469) - - 1,199 1,099
Recoveries on loans and advances previously written off 25,577 - - 49,744 38,868
19,803
Comprising: 25,831 - - (i) AMCON expenses
Net specific credit impairment charges 28,235 15,925 - -
(2,404) 16,394 - - AMCON charges (0.3% of total asset value) is a statutory levy by the Asset Management Corporation of Nigeria on all commercial banks
Specific credit impairment charges (note 12.3) - - operating in Nigeria.
Recoveries on loans and advances previously written off (254) (469) - -
Portfolio credit impairment charges/(reversal) (note 12.3) 25,577 3,878
19,803 170 500
31.7 Staff costs 33,177 24 -
Short term – salaries and allowances 180 28,957 -
Staff cost: below-market loan adjustment 241 396
Equity-linked transactions (note 31.11) 2,925 975 590 500
36,282
30,173

Included in staff costs is N344 million (2016: N333 million) representing salaries and allowances paid to executive directors for the year. See note 32.

218 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 219

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

(ii) Non audit services 31.9 Transactions requiring regulatory Technical Supports (“ATS”) services for 31.10 Operating leases
approval (continued) Finacle software expiring in December
The details of services provided by the auditors (Messrs KPMG Professional Services) during the year, other than statutory audit of 2017. During this year, a total payment The group leases a number of branch and
financial statements, are as follows: (i) NOTAP approved the transfer of of N220 million was made. office premises under operating leases.
technology agreement with Wizzit The lease period varies, and typically
Group Company International, South Africa for a year and (iv) An addendum NOTAP approval was run for a period of 3 to 10 years, with an
expired in April 2017. During the year, a received for a year, effective May 2017, option to renew the lease after that date.
31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016 total amount of N18 million was paid to to the software licence agreement with Lease payments are increased periodically
Nmillion Nmillion Nmillion Nmillion Wizzit International. Intellinx Limited. During the year, a (usually every three periods) to reflect
total amount of N101 million was paid market rentals.
Advisory services – remuneration survey 4- -- (ii) The software licence agreement to Intellinx Limited.
Tax services – review transfer pricing documentation payment to Microsoft Ireland At year end, the future minimum lease
Professional fees on Scrip dividend issue -1 -1 Operations Limited was approved by (v) NOTAP approved the software licence payments under non-cancellable operating
Audit of deposit insurance certification NOTAP in 2015 for a validity period agreement payment to Nucleus leases were payable as follows:
Professional fees on review of ISA 810 2- 2- of 3 years. During the year, a total Software Exports Limited for a year
Assurance services – ISAE 3000 review of controls at Stanbic IBTC payment of N1,125 million was made. expiring March 2018. During the
Nominees Limited 31 3- year under review, a total payment
Advisory services – survey financial services industry (iii) NOTAP issued approval for a year of N14 million was made.
Compilation of financial information for preparation of rights issue 3- 1- and expired for payment of Annual
CBN corporate governance and whistle blowing guidelines
Training services 45 --
Audit services – audit procedures on BA 610 reporting for SBSA
-3 - - Group Company
-5 - -
- 12 - - 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
-1 - - Nmillion Nmillion Nmillion Nmillion
43 - -
19 31 6 1

Less than one year 63 51 --
Between one and five years
31.9 Transactions requiring regulatory approval More than five years 193 354 --

The rules of Financial Reporting Council of Nigeria require that transactions or agreements requiring registration by regulatory body -- --
in Nigeria shall only be recognised in the financial statements to the extent that approval is obtained. For transactions recognised, the
relevant registration details are required to be disclosed. 256 405 --

The group obtained approval of National Office for Technology and Promotion (NOTAP) for some information technology project, the 31.11 Share-based payment transactions
cost of which have been recognised in these financial statements. Relevant details are disclosed as follows:
The group operates a number of share- based payment arrangements under which the entity receives services from employees
Amounts recognised in as a consideraion for equity instrument of the group or cash settlement based on equity instrument of the group.
financial statements
At 31 December 2017, the group had the following share-based arrangements
Transaction involved Registration Approved basis Certificate validity 31 Dec 2017 31 Dec 2016
certificate number and amount Nmillion Nmillion (a) Share appreciation rights based on equity instrument of Stanbic IBTC Holdings PLC (Stanbic IBTC Equity Growth Scheme)
(i) T he Master agreement between Wizzit NOTAP/AG/ $54,570 30 April 2016 – cash settled
International and Stanbic IBTC Bank PLC FI/1280/16/208 to 30 April 2017 18 9 (b) Share options and appreciation rights based on equity instrument of Standard Bank Group (Parent company share incentive schemes)
NOTAP/AG/ Bulk remittance of 01 March 2015 to – equity settled
(ii) Microsoft Volume Licensing Agreement FI/1280/15/64 $3,396,240.00 28 February 2018 1,125 385 (c) Deferred bonus scheme.
between Microsoft and Stanbic IBTC
Bank PLC NOTAP/AG/ The expenses and liabilities recognised in respect of the share based arrangements are as follows:
FI/1280/23/150
(iii) Amendment to the Master Software $665,622 1 year expiring on 220 201 31 Dec 2017 31 Dec 2016
Licence Agreement between Edgverve NOTAP/AG/ 31 December 2017 Nmillion Nmillion
Systems Limited India and Stanbic IBTC FI/1280/17/528 Expenses recognised in staff costs 1,520 129
Bank PLC Bulk remittance of 02 May 2017 to 101 85 Stanbic IBTC Equity Growth Scheme (credit)/charge (7) (9)
NOTAP/AG/ 14 - Parent company share incentive schemes** 1,412 854
(iv) Software Licence and Support Agreement FI/1280/13/440 $306,497 02 November 2017 Deferred bonus scheme (DBS) 2,925 974
between Intellinx Limited and Stanbic IBTC 1,478 680
Bank PLC Bulk remittance of 02 May 2014 Liabilities recognised in other liabilities 1,265 421
Stanbic IBTC Equity Growth Scheme 1,043 825
(v) Affiliate Agreement between Nucleus $41,452 to 01 May 2017 Deferred bonus scheme 2,308 1,246
Software Exports Limited and Stanbic IBTC
Bank PLC

**T he parent company share incentive scheme is equity settled. As such, a corresponding decrease in equity has been recognised. See Statement of changes in equity for
further details.

220 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 221

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

31.11 Share-based payment transactions (continued) 31.11 Share-based payment transactions (continued)

a) S tanbic IBTC Equity Growth Scheme b. P arent company share incentive schemes
Share options and appreciation rights
On 1 March 2010 and 1 March 2011, the group granted share appreciation rights to key management personnel that entitles A number of employees of the group participate in the Standard Bank Group’s share schemes. Standard Bank Group (“SBG”) has two
the employees to cash value determined based on the decrease in share price of Stanbic IBTC Holdings PLC between grant date equity-settled schemes, namely the Group Share Incentive Scheme and the Equity Growth Scheme. The Group Share Incentive
and exercise date. Scheme confers rights to employees to acquire ordinary shares at the value of the SBG share price at the date the option is granted.
The Equity Growth Scheme was implemented in 2005 and represents appreciation rights allocated to employees. The eventual value
The object and purpose of the scheme is to promote an identity of interest between the group and its senior employees, to attract, of the right is effectively settled by the issue of shares equivalent in value to the value of the rights.
retain and motivate skilled and competent personnel with high potential to influence the direction, growth and profitability of the
group by enhancing leadership commitment and drive to grow the group market value and position in support of shareholder interests. The two schemes have five different sub-types of vesting categories as illustrated by the table below:

The provision in respect of liabilities under the scheme amounts to N1,265 million at 31 Dec 2017 (Dec 2016: N421 million). Type A Year % vesting Expiry
Type B 3, 4, 5 50, 75, 100 10 Years
The terms and conditions of the grants are as follows. Type C 5, 6, 7 50, 75, 100 10 Years
Type D 2, 3, 4 50, 75, 100 10 Years
Vesting category Year % vesting Expiry Type E 2, 3, 4 33, 67, 100 10 Years
Type A 3, 4, 5 50, 75, 100 10 Years 3, 4, 5 33, 67, 100 10 Years

Reconciliation Units 31 Dec 2016 A reconciliation of the movement of share options and appreciation rights is detailed as follows:
Units outstanding at beginning of the year 31 Dec 2017 b(i) Group share incentive scheme – share options
Granted 67,824,702
Forfeited 59,113,755 - Option price range Number of options
Exercised - - 31 Dec 2017 31 Dec 2016
Lapsed 31 Dec 2017 31 Dec 2017
Units outstanding at end of the year (186,916) (8,710,947) (ZAR) (Naira)
(33,599,126) -
Options outstanding at beginning of the year 62.39 - 111.94 1,678 - 3,010 - 227,525
- 59,113,755 Transfers 92.00 - 111.94 2,474 - 3,010 65,900 (96,350)
25,327,713 Exercised (21,050) (102,950)
Lapsed (28,225)
The fair value of share appreciation rights is determined using Black-Scholes formula. The inputs used in the measurement of their fair value Options outstanding at the end of the year -
were as follows: 44,850 -

Weighted average fair value at grant date (N) 31 Dec 2017 31 Dec 2016 The weighted average SBG share price for the year to 31 December 2017 year end was ZAR157.29 (December 2016: ZAR151.63).
– Rights granted 1 March 2010 15.30 15.30 The following options granted to employees had not been exercised at 31 December 2017:
Weighted average fair value at grant date (N)
– Rights granted 1 March 2011 17.83 17.83 Option price range Weighted average price

Expected life (years) 3.19 3.19 Number of ordinary shares (ZAR) (Naira) (ZAR) (Naira) Option expiry year
37.46 40.84 6,100
Expected volatility (%) 13.88 16.25 1,250 28.00 170,800 92.00 2,473.88 Year to 31 December 2018

Risk-free interest rate (%) 1.57 6.18 37,500 62.39 77,988 62.39 1,677.67 Year to 31 December 2019
44,850
Dividend yield (%) 98.80 - 103.03 3,087 - 3,228 101.62 2,732.56 Year to 31 December 2021

There were no options outstanding at 31 December 2016.

222 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 223

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

b(ii) Equity Growth Scheme - Appreciation rights Appreciation right price range Number of rights 31.11 Share-based payment a longer-term outlook in business is indexed to the SBG’s share price and
31 Dec 2017 31 Dec 2016 transactions (continued) decision-making and closer alignment accrues notional dividends during the
Rights outstanding at beginning of the period 31 Dec 2017 31 Dec 2017 Deferred bonus scheme 2012 (DBS 2012) of performance with long-term value vesting period, which are payable on
Transfers (ZAR) (Naira) In 2012, changes were made to the DBS creation. vesting. The awards vest in three equal
Exercised to provide for a single global incentive amounts at 18 months, 30 months and 42
Lapsed -- - 65,130 deferral scheme across the Standard Bank All employees granted an annual months from the date of award. The final
Rights outstanding at the end of the period 113,230 (65,130) Group (SBG). The purpose of the Deferred performance award over a threshold have payout is determined with reference to the
62.39 - 156.96 1,677 - 4,221 (77,204) Bonus Scheme 2012 is to encourage part of their award deferred. The award SBG’s share price on vesting date.
-
62.39 - 98.00 - - -
36,026 -
-- Units
31 Dec 2017
-- 31 Dec 2016
154,979
The following rights granted to employees had not been exercised at 31 December 2017: Reconciliation - 457,450
Units outstanding at beginning of the period 316,353
Price range Weighted average price Granted (202,298) (183,269)
(ZAR) Exercised 286,089 (372,565)
Number of rights 156.96 (Naira) (ZAR) (Naira) Expiry period Transfers (5,089) (62,990)
15,005 122.24 Year to 31 December 2025 Forfeited -
21,021 156.96 Year to 31 December 2026 Lapsed 233,681 -
36,026 Units outstanding at end of the period 154,979
122.24

There were no options outstanding at 31 December 2016. Weighted average fair value at grant date (ZAR) 122.24 122.24
Expected life (periods) 2.51 2.51

(c) Deferred bonus scheme (“DBS”) a minimum threshold for key management continued employment at that time. d. Performance reward plan (“PRP”)
and executives. This improves the The final payment of the deferred bonus is A new performance driven share plan commenced in March 2014 which rewards value delivered against specific targets. The PRP
It is essential for the group to retain alignment of shareholder and management calculated with reference to the Standard incentivises a group of senior executives to meet the strategic long-term objectives that deliver value to shareholders, to align the interests
key skills over the longer term. This is interests by creating a closer linkage Bank Group share price at payment date. of those executives with those of shareholders and to act as an attraction and retention mechanism in a highly competitive marketplace for
done particularly through share-based between risk and reward, and also To enhance the retention component of skills. The PRP operates alongside the existing conditional, equity-settled long-term plans, namely the EGS, GSIS and DBS.
incentive plans. The purpose of these facilitates retention of key employees. the scheme, additional increments on the
plans is to align the interests of the deferred bonus become payable at vesting The PRP is settled in shares to the employee on the applicable vesting dates together with notional dividends that are settled in
group, its subsidiaries and employees, All employees, who are awarded short- and one period thereafter. Variables on cash. The shares that vest (if any) and that are delivered to the employee are conditional on the pre-specified performance metrics.
as well as to attract and retain skilled, term incentives over a certain threshold, thresholds and additional increments in the
competent people. are subject to a mandatory deferral of a DBS are subject to annual review by the Units
percentage of their cash incentive into remuneration committee, and may differ 31 Dec 2017
The group has implemented a scheme to the DBS. Vesting of the deferred bonus from one performance period to the next.
defer a portion of incentive bonuses over occurs after three periods, conditional on 12,300
67,200
Reconciliation (24,528) 31 Dec 2016
Units outstanding at beginning of the year 142,600
Granted (32,272) 110,800
Cancelled 165,300 24,600
Transferred from/(to) group companies (37,700)
Exercised 155.95 (85,400)
Units outstanding at end of the year 3.00
-
Weighted average fair value at grant date (ZAR) 12,300
Expected life at grant date (year)
122.24
3.00

224 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 225

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

e. Quanto stock scheme 32. Emoluments of directors
Since 2007, Standard Bank PLC has
operated a deferred incentive arrangement of the award is accrued over the vesting incentive is delivered in Quanto stock units Group Company
in the form of the Quanto stock unit plan. period (generally three periods), normally with three period vesting and an additional
Qualifying employees, with an incentive commencing the period in which these are six months holding period after vesting. 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
award above a set threshold, are awarded awarded and communicated to employees. Thereafter half of the remaining incentive Nmillion Nmillion Nmillion Nmillion
Quanto stock units denominated in USD (non-deferred portion) is paid immediately
for nil consideration, the value of which Special terms apply to employees in cash and the other half is delivered Executive directors 344 333 91 78
moves in parallel to the change in price of designated by the Prudential Regulatory in Quanto stock units with a six month
the SBG shares listed on the JSE. The cost Authority (“PRA”) as Code Staff. For these vesting period. Emoluments of directors in respect of services rendered1:
employees the deferred portion of the While directors of Stanbic IBTC Holdings PLC

Reconciliation Units 31 Dec 2016 as directors of the company and/or subsidiary companies 401 334 230 208
Units outstanding at beginning of the year 31 Dec 2017
Exercised 287,000 otherwise in connection with the affairs of 29 40 8 7
Transfers 147,000 (140,000) Stanbic IBTC Holdings PLC or its subsidiaries 774 707 329 293
Units outstanding at end of the year (94,000)
- Non-executive directors
- 147,000
53,000 Emoluments of directors in respect of services rendered:
While directors of Stanbic IBTC Holdings PLC

as directors of the company and/or subsidiary companies

otherwise in connection with the affairs of
Stanbic IBTC Holdings PLC or its subsidiaries

Pensions of directors and past directors

Quanto stock units granted not yet exercised at year end: 1 In order to align emoluments with the performance to which they relate, emoluments reflect the amounts accrued in respect of each period and not the amounts paid.

Unit expiry period Number of units 31 Dec 2016 Emoluments disclosed above include amounts paid to: 31 Dec 2017 31 Dec 2016
period to 31 December 2016 31 Dec 2017 (i) the chairman Nmillion Nmillion
period to 31 December 2017 - (ii) the highest paid director
period to 31 December 2018 - 94,000 31 60
Units outstanding at end of the year - 53,000
53,000 147,000 91 78
53,000
33. Taxation Group Company

Income tax (note 33.1) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Nmillion Nmillion Nmillion Nmillion

12,785 8,689 2,380 892

12,785 8,689 2,380 892

In accordance with Nigerian tax regime, dividends received by the company from its subsidiaries are exempted from tax if it is distributed to shareholders. The company
has no taxable profit as a result of tax exempt dividends. The company has also not been subject to minimum tax, (in line with the provisions of the Nigerian tax laws -
Section 33 of Companies Income Tax Act CAP C21 LFN 2007 (as amended)) as it has more than 25% of imported capital.

33.1 Income tax 12,785 8,689 2,380 892
Current year 13,058 8,981 2,389 328
Current tax (292) 564
Deferred tax (273) (9)

Taxation per statement of profit or loss 12,785 8,689 2,380 892
Income tax recognised in other comprehensive income 83 - - -
Deferred tax 83 - - -
Current tax - - - -
Taxation per total comprehensive income
12,868 8,689 2,380 892

226 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 227

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

33.2 Rate reconciliation Group Company 34. Earnings per ordinary share

Rate reconciliation 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016 The calculations of basic earnings per ordinary share has been based on Group Company
The total tax charge for the year as a percentage of profit before taxation % % % % the following profit attributable to ordinary shareholders and the weighted
Information technology levy average number of ordinary shares outstanding:
Education tax 19 23 9 - Earnings attributable to ordinary shareholders (Nmillion) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
The corporate tax charge for the year as a percentage of profit before tax Weighted average number of ordinary shares in issue Nmillion Nmillion Nmillion Nmillion
Tax relating to prior years Basic earnings per ordinary share (kobo)
Net tax charge 1 - -1
The charge for the year has been reduced/(increased)
as a consequence of: 1---
Non-taxable dividends
WHT on Dividend not distributed & other taxes not at 30% 21 23 9 1 46,195 24,642 25,165 609
Other Non-deductible expense 10,049 10,000 10,049 10,000
Non-taxable interest ----
Other non-taxable income 460 246 250 6
Tax losses not accounted for DTA 21 23 9 1
Temporary difference not accounted for in deferred tax asset
Other permanent differences 0 - 31 - Diluted earnings per ordinary share
Standard rate of tax (9) - (9) 29 Basic earnings per ordinary share equals diluted earnings per share as there are no potential dilutive ordinary shares in issue.
(1) - - -
27 27 - - 35. Statement of cash flows notes

9--- Group Company
(16) - - -
35.1 (Increase)/decrease in assets 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
- ( 11) - 5 Trading assets Nmillion Nmillion Nmillion Nmillion
( 1) (10) (1) (5) Pledged assets
30 29 30 30 Loans and advances (134,624) 21,101 --
Other assets (14,937) 58,267 --
Temporary differences not accounted for in deferred tax asset concern temporary differences relating to mainly tax losses carried forward Restricted balance with the Central Bank (37,341) --
for which no deferred tax asset is recognised although the tax losses will continue to be available to offset future tax liability. The tax law (10,222) 2,225 78 770
permits the Company to continue to carry forward the tax losses indefinitely. (61,749) (15,479) --
(5,507)
33.3 Income tax recognised in other comprehensive income
(258,873) 60,607 78 770
The table below sets out the amount of income tax relating to each component within other comprehensive income:
35.2 Increase/(decrease) in deposits and other liabilities
Group Before tax Tax (expense)/benefit Net of tax Deposit and current accounts 198,159 26,496 - -
31 December 2017 Nmillion Nmillion Nmillion Trading liabilities 57,124 (18,776) - -
Net change in fair value of available-for-sale financial assets Other liabilities and provisions 57,990 1,157 (76)
Realised fair value adjustments on available-for-sale 4,294 - 4,294 50,563 1,157 (76)
financial assets transferred to profit or loss 35.3 Cash and cash equivalents - Statement of cash flows 313,273 58,283
Related tax (63) - (63) Cash and cash equivalents (note 7) 7,545 1,768
- 83 83 Less: restricted balance with the Central Bank of Nigeria 401,348 301,351 - -
31 December 2016 Cash and cash equivalents at end of the year (171,339) (109,590)
Net change in fair value of available-for-sale financial assets 4231 - 4314 230,009 7,545 1,768
Realised fair value adjustments on available-for-sale 191,761
financial assets transferred to profit or loss (409)
(333) (76)
76
76 - (333)
(257) (76)

228 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 229

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

35.4 Effect of exchange rate changes on cash and cash Group Company 36. Related party transactions (continued)
equivalents
31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016 36.3 Balances with Standard Bank of South Africa (“SBSA”) and other related parties
Currency Nmillion Nmillion Nmillion Nmillion In the normal course of business, current accounts are operated and placements of foreign currencies and trades between currencies
USD are made with SBSA and other entities within the Standard Bank Group.
EUR (1,068) 13,912 - -
GBP The relevant balances are shown below:
Other currency
Effect of exhange rate 221 741 - - Group Company

35.5 Net derivative assets 106 147 - - 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Movement in derivative assets Nmillion Nmillion Nmillion Nmillion
Movement in derivative liabilities (4) 106 - - Note
Unobservable valuation difference
(745) 14,906 - - Amounts due from related parties
Loans to banks
3,265 (13,406) - - Current account balances 12 9,234 7,760 - -
Derivatives assets 7 19,641 15,151 7,545 1,768
(9,196) 11,405 - - Other assets 10.6 973
15 15 265 - -
9,598 3,460 - - - 1,365 1,082
29,863 8,910 2,850
23,176

3,667 1,459 - -

36. Related party transactions 36.2 Subsidiaries a. L oans to banks: These represent foreign currency placement with Standard Bank Group entities. Placements are usually denominated
in US dollars and Rands. USD interest rate ranges between 0.12% - 3.0%, while Rand rate ranges between 5-8%. Tenor is usually
36.1 Parent and ultimate controlling party Details of effective interest in subsidaries are disclosed below and short ranging between 1-6 months. The contract terms are based on normal market terms. Details per counterparty are as follows:
The company is 53.07% owned by Stanbic Africa Holdings also in Note 13.
Limited, which is incorporated in the United Kingdom. The
ultimate parent and controlling party of the group/ company Standard Bank of South Africa (see note i below) 8,839 7,396 - -
is Standard Bank Group Limited, incorporated in South Africa.
Stanbic IBTC Holdings PLC has 9 direct subsidiaries and 2 % holding ICBC Standard Bank PLC 395 364 - -
indirect subsidiaries as listed under note 36.2 below.
Direct subsidiaries 100% 9,234 7,760 - -
Stanbic IBTC Holdings PLC (“Holdco”) is related to other Stanbic IBTC Bank PLC 100%
companies that are fellow subsidiaries of Standard Bank Group Stanbic IBTC Ventures Limited (“SIVL”) 100% (i) Included in the balance with SBSA is N7,027 million (2016: N5,413 million) representing amount received from SBSA under the Sale,
Limited. These include Standard Bank Isle of Man Limited, Stanbic IBTC Capital Limited (“SICL”) 100% Purchase Agreement for Finacle banking software. The fund is placed in an escrow account and is not available for use by the group
Standard Bank of South Africa (“SBSA”), Stanbic Bank Ghana Stanbic IBTC Asset Managers Limited (“SIAML”) 88.24% on a day to day basis. Interest rate applicable on the balance as at year end was 7.32%.
Limited, CfC Stanbic Bank Kenya Limited, Stanbic Bank Botswana, Stanbic IBTC Pension Managers Limited (“SIPML”) 100%
Stanbic Bank Uganda Limited, and Standard Bank (Mauritius) Stanbic IBTC Investments Limited (“SIIL”) 100% b. Current account balances (Group): These represent trade related d. Other assets (Group): These represent reimbursable expenses
Limited. ICBC Standard Bank PLC, which is an associate of Stanbic IBTC Stockbrokers Limited (“SISL”) 100% balances held with SBSA and are particularly used for letters of recoverable from related parties. No specific impairments have
Standard Bank Group Limited, is also a related party. Stanbic IBTC Trustees Limited (“SITL”) 100% credit and other foreign trade transactions. The balances are been recognised in respect of the amount.
Stanbic IBTC Insurance Brokers Limited (“SIIBL”) repayable on demand and usually non interest bearing.
Other assets (Company): These represent receivable from
Indirect subsidiaries C urrent account balances (Company): These relate to demand subsidiary entities in respect of reimbursable expenses and
Stanbic IBTC Bureau De Change Limited deposit held with Stanbic IBTC Bank PLC. The deposit is non management service agreement. There exist technical and
Stanbic IBTC Nominees Limited interest bearing and the terms are based on normal market management service agreements between the company and
terms. its subsidiaries. Under the agreement, the company provides
technical expertise and management skills to the subsidiaries
c. Derivatives: These represent fair value of currency swap and in functional areas including marketing and branding, internal
foreign exchange forward transactions with related parties. audit, human resources, financial control, and information
The transaction includes EUR/ USD swap, USD/ ZAR swap, technology. In return, subsidiaries pay fee based on percentage
GBP/USD swap and USD/ CNH swap with a combined notional of their income to the company. The percentage ranges from
principal of N52.69 billion (2016: N9.06 billion). The contracts 2% to 10% of profit before tax or commission income.
maturity ranges from one month to 2 years.

230 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 231

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

36.3 Balances with Standard Bank of South Africa (“SBSA”) and other related parties (continued)

Group Company Profit or loss impact of transactions with Standard Bank Group Company
of South Africa and other related parties
Note 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016 Note 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Nmillion Nmillion Nmillion Nmillion Interest income earned 31.1 Nmillion Nmillion Nmillion Nmillion
Interest expense 31.2
Amounts due to related parties Trading revenue/(loss) 31.4 436 184 --
Deposits and current accounts Fee and commission income 31.3
Derivatives liabilities 21 38,843 605 - - Dividend income 31.5 (2,715) (2,224) --
Trading liabilities - - Operating expense incurred 31.8
Subordinated debt 10.6 186 5,336 - - (4,143) (5,136) --
Other borrowings - -
Other liabilities 9.2 - - - - -- 1,491 835
227 86
23 13,306 12,251 227 86 -- 28,092 1,501

22 40,406 50,524 -- --

26 17 34,335

92,758 103,051

e. Deposits and current accounts: These represent demand deposits with related parties. Balances are denominated in NGN with no j. Interest income earned: This represents interest earned on n. Dividend income: represents dividend received from
interest rates and are repayable on demand. placement with group entities. The nature of transaction is subsidiaries.
presented in note 36.3(a)
Standard Bank of South Africa 38,840 602 - - 36.4 Balances with key management personnel
ICBC Standard Bank PLC - repurchase agreements k. Interest expense: This represents interest expense booked in
Standard Bank (Mauritius) Ltd - --- respect of deposits, subordinated debt, and other borrowing Key management personnel includes: members of the Stanbic
Standard Bank De Angola SA transactions with group entities. The nature of transaction is IBTC Holdings PLC board of directors and Stanbic IBTC Holdings
Fellow subsidiaries with Stanbic IBTC group - --- presented in note 36.3(e), (g), & (h). PLC executive committee. The definition of key management
includes close members of key management personnel and any
3 --- l. Trading revenue/(loss): This represents fair value gain/ (loss) entity over which key management exercise control, joint control
on trading and derivative transactions with group entities. The or significant influence. Close family members are those family
- 3-- nature of transaction is presented in note 36.3(c), (f) and (g). members who may influence, or be influenced by that person in
their dealings with Stanbic IBTC Holdings PLC. They include the
38,843 605 - - m. Fee and commission income: This represents fee income person’s domestic partner and children, the children of the person’s
earned by the Company from technical and management domestic partner, and dependents of the person or the person’s
f. Derivatives: These represent fair value of currency swap and forward transactions with entities within the Standard Bank Group. Details service provided to subsidiaries. Details on the nature and domestic partner.
per counterparty are as follows: terms of the agreement are provided in note 36.3 (d).

(i) Key management compensation Group

Standard Bank of South Africa 2 5,336 - - Salaries and other short-term benefits 31 Dec 2017 31 Dec 2016
ICBC London Plc 184 - - - Post-employment benefits Nmillion Nmillion
186 5,336 - - Value of share options and rights expensed
1,089 474
(ii) Loans and deposit transactions with key management personnel
Loans and advances 50 25
Loans outstanding at the beginning of the year
The contract terms include currency swaps and forward exchange of EUR / USD, USD / ZAR, and USD / NGN. The contracts had a total notional principal of N39.25bn Net movement during the year 154 16
(Dec 2016: N39.0bn). Maturity dates of the contracts ranges from one month to three years. Loans outstanding at the end of the year
Net interest earned 1,294 515

g. Subordinated debt: See note 23 for details of the transaction. i. Other liabilities (Group): These relate to amount owed to SBSA 214 330
h. Other borrowings: See note 22 for details of the transaction. in respect of refinanced letter of credits. (23) (116)
191 214
Other liabilities (Company): These represent reimbursable
expenses payable to Stanbic IBTC Holdings Group. 13 19

Loans include mortgage loans, instalment sale and finance leases and credit cards. Loans granted to employees and executive directors
are granted at concessionary rates 14%-16% below the prime lending rate. No specific impairments have been recognised in respect
of loans granted to key management at the reporting date (2016: nil). The mortgage loans and instalment sale and finance leases are
secured by the underlying assets. All other loans are unsecured.

232 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 233

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

Deposit and current accounts Group 31 Dec 2016 (v) Other transactions with those granted to executive directors priced at a range of 99% to 100% of
Deposits outstanding at beginning of the year 31 Dec 2017 Nmillion key management personnel and employees were granted at below- the loan value while the Stanbic Kenya
Net movement during the year Directors interests in contracts the market rates. There were no non- transaction was priced at par value.
Deposits outstanding at end of the year Nmillion 373 performing director related exposures as These exposures have been derecognised
Net interest expense (126) One of the Bank’s branch located on the at balance sheet date (2016: Nil). Details in the financial statements of the group.
247 Ground Floor at Churchgate Towers, PC of the exposures is presented in note 37.
30 247 30, Churchgate Street, Victoria Island, Foreign currency revolving facility from
3 Lagos is owned by First Continental 36.5 Other related party transactions Standard Bank of South Africa
277 Properties Limited, and Mr. Ratan Mahtani During 2017, Stanbic IBTC Bank PLC
1 is a Director on the Board of this Company. Shared service arrangement entered into a standby funding agreement
The lease was renewed in March 2015, with subsidiaries with Standard Bank of South Africa (Isle
Deposits include cheque, current and savings accounts. is for a period of three years at a cost Stanbic IBTC Holdings PLC provides some of Man Branch) where Standard Bank of
(iii) Investments of N146 million. business support functions to some of South Africa commits to provide up to
Details of key management personnel’s investment transactions and balances with Stanbic IBTC Holdings PLC are set out below. its subsidiaries. The business support US$50 million to Stanbic IBTC Bank PLC.
Stanbic IBTC Bank (a subsidiary of the functions include internal audit, marketing The agreement is effective from 18 July
Investment products 63 63 Company) has a security equipment and branding, internal control, legal and 2017 and renewable annually. See page
Balance at the beginning of the year 288 - maintenance contract with Allegiance secretarial services. The costs incurred by 120 under “Liquidity Contingency” for
Net movement during the year 351 63 Technologies Limited whose director is a Stanbic IBTC Holdings PLC in respect of the further details.
Balance at the end of the year close family member of Mr Moses Adedoyin functions are shared between Stanbic IBTC
who is a former non-executive director Holdings PLC and subsidiaries in agreed Stanbic IBTC Bank PLC did not draw any
(iv) Shares and share options held 31 Dec 2017 31 Dec 2016 of the Stanbic IBTC Bank (a subsidiary of ratio that reflect the rate of consumption fund under the agreement during the year.
Number Number the group). The contract covers provision by each entity. The costs shared are actual
Share and share options held of maintenance services for CCTV and cost incurred with no mark-up included. Staff health insurance scheme
Aggregate number of share options issued to Stanbic IBTC key management personnel: 2,569,101 7,538,254 electronic access control systems to the The group’s employees are covered under
Share options held (Stanbic IBTC Holdings PLC scheme) 532,857 314,279 bank. Payment made within the year was Purchase of customer loans from Standard a comprehensive health insurance scheme
Share options held (ultimate parent company schemes) N24.74mn. Bank of South Africa and Stanbic Bank, provided by Total Health Trust Limited,
Kenya a subsidiary of Liberty Holdings Limited.
Loans to entities affiliated to directors During the year, Stanbic IBTC Bank PLC Liberty Holdings Limited is a subsidiary of
and ex-directors/ Loans to employees bought some US dollar exposures from Standard Bank Group Limited. Expenses
The group has some exposures in terms Standard Bank of South Africa (“SBSA”) incurred by the group in respect of the
of loans and advances to employees and and Stanbic Bank Kenya. The total value scheme for the year amounted to N311
to customers that are affiliated to its of the exposures bought from SBSA million (2016: N305 million).
present and past directors. Loans granted and Stanbic Bank, Kenya amounted to
to customers that are affiliated to directors US$29.6 million and US$13.5 million
were granted at commercial rates while respectively. The SBSA transaction was

234 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 235

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

37. Director and staff related exposures

The group has some exposures in terms of loans and advances to employees and to customers that are affiliated to its present and past
directors. Loans granted to customers that are affiliated to directors are granted at commercial rates while those granted to executive
directors and employees are granted at a below-the market rates. There were no non-performing director related exposures as at balance
sheet date (2016: Nil). In cases where outstanding balance exceeds approved credit limit, no principal payment was due on the facility
and the excess therefore relates to accrued interest.

Schedule of directors and staff related credits

Name of Company/Individual Relationship Name of Facility type Currency Date granted Expiry date Approved credit Outstanding plus Status Interest rate
Unilever Nigeria Plc Former Chairman (Holdco) related interest Term Loan USD 10-Nov-17 9-Jan-18 limit N accrued interest N Performing % Security nature
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD 15-Nov-17 14-Jan-18 Performing 6 Unsecured
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD 29-Nov-17 52,179,855 52,657,831 Performing 6 Unsecured
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 6-Dec-17 27-Feb-18 56,230,968 56,697,579 Performing 6 Unsecured
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 8-Dec-17 6-Mar-18 39,906,704 40,141,268 Performing 5 Unsecured
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD 8-Dec-17 8-Mar-18 11,743,800 11,788,969 Performing 5 Unsecured
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 12-Dec-17 13-Feb-18 11,743,800 11,785,520 Performing 6 Unsecured
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 12-Dec-17 12-Mar-18 24,986,022 25,092,682 Performing 6 Unsecured
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 15-Dec-17 12-Mar-18 11,717,549 11,758,928 Performing 6 Unsecured
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD 15-Dec-17 15-Mar-18 36,319,563 36,447,814 Performing 5 Unsecured
Unilever Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD 28-Dec-17 15-Mar-18 Performing 6 Unsecured
Seplat Petroleum Chairman (Holdco) Atedo Peterside Term Loan USD 30-Sep-16 26-Feb-18 8,153,205 8,173,855 Performing 6 Unsecured
Development Company Plc Basil Omiyi 30-Sep-21 12,998,030 13,037,756 10 All Asset Debenture And
Seplat Petroleum Chairman (Holdco) 13-May-15 5,282,002 5,312,730 Performing Borrower Personal Guarantee
Development Company Plc Basil Omiyi 381,780,270 363,682,899 8 All Asset Debenture And
Seplat Petroleum Chairman (Holdco) 30-Jun-15 Performing Borrower Personal Guarantee
Development Company Plc Basil Omiyi Term Loan USD 31-Dec-18 7,451,100,000 3,281,130,021 10 All Asset Debenture And
Seplat Petroleum Chairman (Holdco) 29-Jun-17 Performing Borrower Personal Guarantee
Development Company Plc Basil Omiyi Term Loan USD 30-Sep-21 8,433,099,786 5,791,523,471 10 All Asset Debenture And
Seplat Petroleum Chairman (Holdco) 18-Dec-17 Performing Borrower Personal Guarantee
Development Company Plc Basil Omiyi Term Loan USD 30-Sep-21 6,165,749,770 6,021,435,156 6 All Asset Debenture And
Presco Plc Former Chairman (Holdco) 26-Jul-17 Performing Borrower Personal Guarantee
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan USD 8-Nov-13 11-Jan-18 1,043,814,793 571,178,890 Performing 20 Negative Pledge
Presco Plc Former Chairman (Holdco) Atedo Peterside 17-Jul-17 Performing 7 Negative Pledge
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 22-Jun-17 30-Jun-22 10,000,000 9,979,287 Performing 20 Negative Pledge
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 7-Dec-17 12-Nov-20 1,066,070,000 538,044,069 Performing 20 Negative Pledge
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 23-Nov-17 30-Jun-22 1,700,000,000 1,702,820,109 Performing 24 Negative Pledge
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 29-Dec-17 30-Jun-22 2,000,000,000 2,003,317,775 Performing 20 Negative Pledge
Presco Plc Former Chairman (Holdco) Atedo Peterside Overdraft NGN 10-Nov-17 31-May-18 1,000,000,000 763,360,805 Performing 6 Negative Pledge
Presco Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 23-Oct-17 30-Jun-22 1,290,000,000 1,292,139,965 Performing 5 Negative Pledge
Nigerian Breweries Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 31-Jul-17 Performing 5 Negative Pledge
Nigerian Breweries Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 10-Oct-17 4-Feb-18 76,121,432 76,868,714 Performing 20 Negative Pledge
Nigerian Breweries Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 28-Dec-17 9-Jan-18 87,324,104 77,609,139 Performing 5 Negative Pledge
Nigerian Breweries Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 3-Nov-17 21-Jan-18 104,166,172 105,240,399 Performing 5 Negative Pledge
Nigerian Breweries Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 10-Oct-17 28-Jan-18 8,000,000,000 3,025,753,425 Performing 5 Negative Pledge
Nigerian Breweries Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 3-Nov-17 8-Jan-18 23,387,093 23,673,021 Performing 5 Negative Pledge
Nigerian Breweries Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 8-Nov-17 12-Jan-18 33,276,087 33,880,180 Performing 5 Negative Pledge
Nigerian Breweries Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 3-Nov-17 1-Feb-18 33,905,744 34,201,190 Performing 5 Negative Pledge
Atedo Peterside Term Loan EUR 8-Jan-18 33,846,552 34,260,354 5 Negative Pledge
Term Loan EUR 1-Feb-18 34,807,921 35,111,229
Term Loan EUR 6-Feb-18 52,113,361 52,527,990
12-Feb-18 93,163,826 93,975,631

236 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 237

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

Schedule of directors and staff related credits (continued)

Name of Company/Individual Relationship Name of Facility type Currency Date granted Expiry date Approved credit Outstanding plus Status Interest rate
Former Chairman (Holdco) related interest Term Loan EUR 6-Dec-17 6-Mar-18 limit N accrued interest N Performing % Security nature
Nigerian Breweries Plc Former Chairman (Holdco) Atedo Peterside Term Loan EUR 10-Oct-17 8-Jan-18 Performing 5 Negative Pledge
Former Chairman (Holdco) Atedo Peterside Term Loan EUR 13-Dec-17 13-Mar-18 106,596,776 107,005,548 Performing 5 Negative Pledge
Nigerian Breweries Plc Former Chief Executive (Holdco) Atedo Peterside Term Loan EUR 13-Dec-17 13-Mar-18 332,764,442 336,832,769 Performing 5 Negative Pledge
Olusola David-Borha 651,957,290 653,785,310 5 Unsecured
Nigerian Breweries Plc Former Chief Executive (Holdco) 8-Nov-17 Performing
Olusola David-Borha 7,327,461 7,348,007 6 Unsecured
Nigerian Bottling Co Plc (Coca-Cola Former Chief Executive (Holdco) 5-Dec-17 Performing
Hellenic Bottling Company) Olusola David-Borha Term Loan USD 7-Jan-18 14,330,012 8,816,413 5 Unsecured
Former Chief Executive (Holdco) 8-Dec-17 Performing
Nigerian Bottling Co Plc (Coca-Cola Olusola David-Borha Term Loan EUR 2-Mar-18 13,878,433 13,933,700 5 Unsecured
Hellenic Bottling Company) Former Chief Executive (Holdco) 29-Nov-17 Performing
Olusola David-Borha Term Loan EUR 16-Jan-18 14,043,141 14,092,818 6 Unsecured
Nigerian Bottling Co Plc (Coca-Cola Former Chief Executive (Holdco) 28-Nov-17 Performing
Hellenic Bottling Company) Olusola David-Borha Term Loan EUR 27-Feb-18 23,995,835 24,133,525 5 Unsecured
Former Chief Executive (Holdco) 29-Dec-17 Performing
Nigerian Bottling Co Plc (Coca-Cola Olusola David-Borha Term Loan EUR 26-Feb-18 26,987,485 27,122,954 5 Unsecured
Hellenic Bottling Company) Former Chief Executive (Holdco) 14-Dec-17 Performing
Olusola David-Borha Term Loan EUR 11-Jan-18 45,508,902 45,529,055 5 Unsecured
Nigerian Bottling Co Plc (Coca-Cola Former Chief Executive (Holdco) 29-Dec-17 Performing
Hellenic Bottling Company) Olusola David-Borha Term Loan EUR 14-Jan-18 235,738,978 169,623,775 6 Unsecured
Ex-Non Executive Director 31-Mar-14 Performing
Nigerian Bottling Co Plc (Coca-Cola Ahmed I Dasuki Term Loan USD 11-Jan-18 306,383,967 306,543,781 21 Deed Of Security Over Shares
Hellenic Bottling Company) And Shareholders Loans,
Term Loan NGN 29-Nov-19 7,500,000,000 3,339,206,320 Negative Pledge, Charge Over
Nigerian Bottling Co Plc (Coca-Cola Security And Memoradum Of
Hellenic Bottling Company) Deposit

Nigerian Bottling Co Plc (Coca-Cola 21 Deed Of Security Over Shares
Hellenic Bottling Company) And Shareholders Loans,
Negative Pledge, Charge Over
Nigerian Bottling Co Plc (Coca-Cola Security And Memoradum Of
Hellenic Bottling Company) Deposit

MTN Nigeria Communications Ltd 6 Deed Of Security Over Shares
And Shareholders Loans,
MTN Nigeria Communications Ltd Ex-Non Executive Director Ahmed I Dasuki Term Loan NGN 30-Nov-15 29-Nov-19 2,592,947,314 742,045,849 Performing Negative Pledge, Charge Over
Security And Memoradum Of
MTN Nigeria Communications Ltd Ex-Non Executive Director Ahmed I Dasuki Term Loan USD 26-Oct-17 24-Jan-18 172,329,041 174,372,255 Performing Deposit

MTN Nigeria Communications Ltd Ex-Non Executive Director Ahmed I Dasuki Term Loan USD 30-Nov-17 28-Feb-18 1,097,143,670 1,103,333,273 Performing 6 Deed Of Security Over Shares
And Shareholders Loans,
Int Towers Limited Ex-Non Executive Director Ahmed I Dasuki Term Loan USD 23-Dec-14 13-Dec-21 3,912,655,400 3,963,781,679 Performing Negative Pledge, Charge Over
Former Chairman (Holdco) Atedo Peterside Term Loan NGN 13-Jul-12 14-Jun-22 1,854,000,000 984,865,417 Performing Security And Memoradum Of
Golden Sugar Company Limited Deposit
(A Subsidiary Of Flour Mills) Former Chairman (Holdco) Atedo Peterside Overdraft NGN 29-Dec-17 29-Jan-18 890,000,000 246,233 Performing
6 Negative Pledge
Golden Sugar Company Limited Non-Executive (Holdco) Fabian Ajogwu San Term Loan USD 27-Mar-14 29-Mar-19 4,305,080,000 3,024,880,635 Performing 7 Debenture On Fixed And
(A Subsidiary Of Flour Mills)
Floating Assets
Aptics Nigeria Ltd (Subsidiary Of Novare - Debenture On Fixed And
Africa Fund Pcc)
Floating Assets
10 All Asset Mortgage Debenture

238 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 239

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

Schedule of directors and staff related credits (continued)

Name of Company/Individual Relationship Name of Facility type Currency Date granted Expiry date Approved credit Outstanding plus Status Interest rate
Urshday Limited (Subsidiary Of Novare Non-Executive (Holdco) related interest Term Loan NGN 28-Mar-17 30-Jun-22 limit Nmillion accrued interest Performing % Security nature
Africa Fund Pcc) Fabian Ajogwu San 23 All Asset
Urshday Limited Non-Executive (Holdco) 23-Dec-16 450,000,000 Nmillion Performing Mortgage Debenture
(Subsidiary Of Novare Africa Fund Pcc) Fabian Ajogwu San 23 All Asset
Cadbury Nigeria Plc Former Chairman (Holdco) 21-Sep-17 503,897,612 Performing Mortgage Debenture
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside 29-Sep-17 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 5-Oct-17 30-Jun-22 2,500,000,000 2,962,994,438 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside 16-Oct-17 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 16-Oct-17 20-Mar-18 575,587,398 610,974,196 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 20-Oct-17 5-Jan-18 11,312,033 11,312,033 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 20-Oct-17 11-Jan-18 1,692,334 1,692,334 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 26-Oct-17 21-Jan-18 12,492,100 12,492,100 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Overdraft NGN 3-Nov-17 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 15-Nov-17 31-May-18 2,400,000,000 1,902,046,630 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 22-Nov-17 26-Jan-18 1,508,914 1,508,914 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 6-Dec-17 18-Apr-18 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 7-Dec-17 1,040,937,565 1,086,738,818 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 11-Dec-17 2-Jan-18 7,084,101 7,084,101 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 18-Dec-17 8-Feb-18 Performing 22 Unsecured
Cadbury Nigeria Plc Former Chairman (Holdco) Atedo Peterside Term Loan NGN 21-Dec-17 21-Feb-18 20,657,472 20,657,472 Performing 22 Unsecured
ANAP Business Jets Limited Former Chairman (Holdco) Atedo Peterside Term Loan NGN 12-Jan-16 23-Feb-18 24,901,041 24,901,041 Performing 22 Unsecured
(ANAP Holdings Limited) Atedo Peterside Term Loan NGN 2-Mar-18 1,045,366 1,045,366 30 Shares
ANAP Business Jets Limited Former Chairman (Holdco) Term Loan NGN 12-Jan-16 9-Mar-18 5,666,923 5,666,923 Performing
(ANAP Holdings Limited) Atedo Peterside Term Loan NGN 19-Mar-18 20,838,962 20,838,962 30 Shares
ANAP Business Jets Limited Former Chairman (Holdco) Card NGN 12-Jan-16 22-Mar-18 14,491,565 14,491,565 Performing
(ANAP Holdings Limited) Atedo Peterside 29-Mar-18 30 Shares
ANAP Business Jets Limited Former Chairman (Holdco) 23-Nov-16 6-Jan-18 7,663,854 7,663,854 Performing
(ANAP Holdings Limited) Atedo Peterside 2,673,543 2,673,543 30 Shares
ANAP Business Jets Limited Former Chairman (Holdco) 23-Nov-16 1,500,000 Performing
(ANAP Holdings Limited) Atedo Peterside 53 30 Shares
ANAP Business Jets Limited Former Chairman (Holdco) 23-Nov-16 Performing
(ANAP Holdings Limited) Atedo Peterside Card NGN 6-Jan-18 1,500,000 46,863 30 Shares
ANAP Business Jets Limited Former Chairman (Holdco) 23-Nov-16 Performing
(ANAP Holdings Limited) Atedo Peterside Card NGN 6-Jan-18 1,500,000 175,873 30 Shares
ANAP Business Jets Limited Former Chairman (Holdco) 23-Nov-16 Performing
(ANAP Holdings Limited) Atedo Peterside Card NGN 23-Nov-19 500,000 53 30 Shares
ANAP Business Jets Limited Former Chairman (Holdco) 23-Nov-16 Performing
(ANAP Holdings Limited) Atedo Peterside Card NGN 23-Nov-19 500,000 53 30 Shares
ANAP Business Jets Limited Former Chairman (Holdco) 14-Dec-16 Performing
(ANAP Holdings Limited) Atedo Peterside Card NGN 23-Nov-19 500,000 53 30 Shares
ANAP Business Jets Limited Former Chairman (Holdco) 25-Jan-17 Performing
(ANAP Holdings Limited) Atedo Peterside Card NGN 23-Nov-19 500,000 53 30 Shares

Card NGN 23-Nov-19 500,000 122,663

Card NGN 23-Nov-19 500,000 189,573

Card NGN 16-Jan-18 1,000,000 129,804

Card NGN 25-Jan-20 1,500,000 53

240 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 241

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

Schedule of directors and staff related credits (continued)

Name of Company/Individual Relationship Name of Facility type Currency Date granted Expiry date Approved credit limit N Outstanding plus Status Interest rate Security nature
Guinness Nigeria Plc Non-Executive (Holdco) related interest Term Loan EUR 23-Nov-17 21-Feb-18 9,098,049 accrued interest N Performing % Unsecured
Guinness Nigeria Plc Non-Executive (Holdco) Ngozi Edozien Term Loan EUR 27-Nov-17 26-Jan-18 25,966,018 Performing 5 Unsecured
Guinness Nigeria Plc Non-Executive (Holdco) Ngozi Edozien Term Loan EUR 12-Dec-17 16-Jan-18 32,141,321 9,150,435 Performing 5 Unsecured
Guinness Nigeria Plc Non-Executive (Holdco) Ngozi Edozien Term Loan EUR 27-Nov-17 26-Jan-18 26,100,197 Performing 5 Unsecured
Guinness Nigeria Plc Non-Executive (Holdco) Ngozi Edozien Term Loan EUR 28-Dec-17 28-Mar-18 36,093,463 32,724,348 Performing 5 Unsecured
Adeniyi Oluwole Director (Bank) Ngozi Edozien Home Loans NGN 26-Mar-10 20-May-22 919,667,626 36,279,972 Performing 5
Atedo N.A. Peterside Former Chairman (Holdco) Adeniyi Oluwole Card NGN 10-Feb-15 31-Oct-19 51,000,000 920,210,327 Performing 9 Legal Mortgage
Dr AAE And Mrs JAO Sogunle Director (Bank) Atedo Peterside Term Loan NGN 28-Nov-17 20-Nov-22 20,000,000 24,228,790 Performing 30 Shares
Dr AAE And Mrs JAO Sogunle Director (Bank) Demola Sogunle Card USD 21-Nov-16 30-Nov-19 60,000,000 Performing 18
Various Staff Staff Demola Sogunle Staff Loan NGN 490,628 Performing 30 Legal Mortgage
Various Staff 8,279,000 59,477,258 11 Cash
Total - Insider Related Credits 9,191,683,238 1,386,077
80,951,138,441 5,869,343,455
55,430,844,445

Off balance sheet engagements

Name of related Outstanding
interest
Name of Company Relationship Facility type Currency N’000 Status
Letter Of Credit Performing
Golden Sugar Company Limited Atedo Peterside Ex-Chairman USD 8,600 Performing
(A Subsidiary Of Flour Mills) (Holdco) Letter Of Credit Performing
Performing
Nigerian Breweries Group Atedo Peterside Ex-Chairman Letter Of Credit EUR 2,941 Performing
(Heineken Intl.) (Holdco) Performing
Bonds And Performing
Nigerian Bottling Co Plc (Coca-Cola Olusola David- Ex - Chief Guarantees EUR 22,709 Performing
Executive (Holdco) Letter Of Credit Performing
Hellenic Bottling Company) Borha Performing
Ex - Chief Letter Of Credit
Nigerian Bottling Co Plc (Coca-Cola Olusola David- Executive (Holdco) EUR 173,864
Letter Of Credit
Hellenic Bottling Company) Borha Non-Executive
(Holdco) Letter Of Credit
Guinness Nigeria Plc Ngozi Edozien USD 6,601
Ex-Chairman Letter Of Credit
Flour Mills Of Nigeria Plc Atedo Peterside (Holdco) USD 27,435
Letter Of Credit
Pz Cussons Nigeria Plc Ngozi Edozien Non-Executive USD 2,828
(Holdco)
Unilever Nigeria Plc Atedo Peterside USD 7,572
Ex-Chairman
Mtn Nigeria Communications Ltd Ahmed I Dasuki (Holdco) USD 7,324

Presco Plc Atedo Peterside Ex-Non Executive EUR 2,502
Director

Ex-Chairman
(Holdco)

262,376

242 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 243

Notes to the consolidated and separate financial statements

For the year ended 31 December 2017

38. Retirement benefit obligations scheme are managed by Stanbic IBTC Pension Managers Limited, 40. Compliance with banking regulation a transaction of N16.35 billion without obtaining CBN
and other appointed pension managers on behalf of the beneficiary approval and for contravening CBN circular.
The group operates a defined contribution pension scheme in staff in line with the provisions of the Pension Reform Act. The group was penalised by the Central Bank of Nigeria
line with the provisions of the Pension Reform Act 2014, with Consequently, the group has no legal or constructive obligations to (“CBN”), the Securities and Exchange Commission (“SEC”) • T he CBN imposed a fine of N2 million for the breach of
contributions based on the sum of employees’ basic salary, housing pay further contributions if the funds do not hold sufficient assets and The Nigerian Stock Exchange (“The NSE”) during the section 4.1 of the revised Guidance Notes on Regulatory
and transport allowances in the ratio 8% by the employee and to meet the related obligations to employees. year as follows: Capital Computation.
10% by the employer. The amount contributed by the group and
remitted to the Pension Fund Administrators during the year was Details of transactions between the group and the group’s post- • CBN imposed a penalty of N200,000 for the late rendition of • C BN imposed a penalty of N14 million for failure to notify
N1,085 million (2016: N1,888 million). employment contribution plans (that is, the contributory pension its daily FinA returns for 01 February 2017, 03 February 2017, the CBN within thirty days of the re-deployment of staff
scheme) are listed below: 13 February 2017, 13 June, 14 June, 30 June, 18 July and 05 members of Stanbic IBTC to the Bank.
The group’s contribution to this scheme is charged to the income September 2017.
statement in the period to which it relates. Contributions to the • The NSE imposed a fine of N1,984,500 for failure to disclose
• CBN imposed a penalty of N10million for the following material information to The Exchange as at when due.
Deposits held with the group 31 Dec 2017 31 Dec 2016 breaches: (a) Deployment of an offsite ATM without CBN
Interest paid Nmillion Nmillion approval – E-business; (b) The returns for ATM cards sent to • S EC observed violations of the Section 135 (1) & (2) of the
Value of asset under management 5,000 - CBN on FinA were different from the returns provided for Investment and Securities Act 2007 and imposed a penalty
Number of Stanbic IBTC Holdings shares held 848 1,459 the examiners review at the bank- E-business; (c) Not fully of N100,000.
19,112 13,735 complying with Section 3.8 of the Prudential Guidelines as
- - it relates to the information requirement of the Credit print • The SEC imposed a penalty of N480,000 for some observed
out-Credit; (d) CBN declined the clearance of a staff member violations of the section 323 (17) & (20) and 279 (2) (6) of
39. Employees and directors Group who had been blacklisted, the staff member was still in the the SEC Rules.
31 Dec 2017 employment of the Bank as at the time of the examination.
a. Employees • SEC imposed a penalty of N4,510,000 for the failure to obtain
The average number of persons employed by the group during the period by category: Number • C BN imposed a penalty of N2 million for contravening the the approval of SEC to utilise the custodian function of the
5 CBN circular which is in respect to the repatriation of exports Bank and to hold securities owned by its clients in a nominee
Executive directors proceeds. account and accept payment on behalf of its clients from
Management 518 individual issuers of securities in contravention of Rule 61
Non-management 2,508 • C BN imposed a penalty of N4 million for the following breaches: (2a) of SEC Rules and Regulations.
3,031 (a) Late reporting of twenty-nine (29) suspicious transactions
Below N1,000,001 in a timely manner to the relevant authorities; (b) Untimely • P encom imposed a penalty of N500,000 for Incomplete
N1,000,001-N2,000,000 - reporting of Currency Transaction Reports (“CTRs”) to the Rendition of Risk Management and Analysis System (“RMAS”)
N2,000,001-N3,000,000 311 relevant authorities. Returns for the Month Ended 31 December 2016.
N3,000,001-N4,000,000 513
N4,000,001-N5,000,000 306 31 Dec 2016 • CBN imposed a penalty of N4 million for consummating
N5,000,001-N6,000,000 212 Number
N6,000,001 and above 174 5 41. Enterprise Risk Review
1,515 505 Kindly refer to page 65 of this annual report
3,031 2,416
2,926

-
486
468
202
232
166
1,372
2,926

244 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 245

Annexure A: Statement of value added

31 Dec 2017 Group % 31 Dec 2017 Company %
Nmillion Nmillion
Gross earnings 31 Dec 2016 31 Dec 2016
Interest paid: 212,434 % Nmillion 29,922 % Nmillion
local
foreign 156,425 2,528

Administrative overhead: (35,115) (24,998) (1,095) (97)
local (4,209) (4,610) - -
foreign (39,324)
(29,608) (1,095) (97)
Provision for losses
Value added (45,176) (35,058) (692) (430)
(780) (370) - -
Distribution
Employees & directors (45,956) (35,428) (692) (430)
Salaries and benefits
(25,577) (19,803) - -
Government 101,577 100 71,586 100 28,135 100 2,001
Taxation
36,282 36 30,173 42 590 2 500 25
The future
Asset replacement (depreciation) 12,785 12 8,689 12 2,380 8 892 45
Expansion (retained in the business)
Total 4,129 4,204 - -
48,381 28,520 25,165 609
52,510 52 32,724 46 25,165 90 609 30
101,577 100 71,586 100 28,135 100 2,001 100

246 Annual report & financial statements Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 247

Annexure B: Financial summary

Statement of financial position Statement of profit or loss

Group Company Group Company

Assets 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2017 2016 2015 2014 2013 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013
Cash and cash
equivalents Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion
Derivative assets 120,312 7,545 2,722 28,827 2,431
Trading assets 401,348 301,351 211,481 143,171 1,768 8 784 Net operating income 172,769 126,053 100,648 104,645 85,232 (1,282) (930) 10,982 14,320 9,137
Pledged assets 1,526 - - Operating expenses
Financial investments 40,711 - - and provisions (111,603) (88,844) (76,997) (61,118) (58,472) 27,545 1,501 (1,083) (1,422) (921)
Asset held on sale 24,733 - - Profit before tax (2,380) (892)
Loans and advances 11,052 14,317 911 4,860 139,304 1,625 -- - - Taxation 61,166 37,209 23,651 43,527 26,760 25,165 9,899 12,898 8,216
to banks 151,479 16,855 37,956 96,345 - -- - - Profit after taxation (12,785) (8,689) (4,760) (9,068) (4,547) 609 (28) 238 116
Loans and advances 43,240 28,303 86,570 34,172 - - -- - - 28,520 18,891 34,459 22,213
to customers 316,641 252,823 162,695 204,502 94,180 920 658 58 48,381 9,871 13,136 8,332
Deferred tax assets - -- - -
Equity Investment 114 112 262 - 289,747 -- - Profit attributable to:
in group companies 9,623 15,264 26,782 8,814 - 118
Other assets 6,059 85,539 68,951 Non-controlling
Intangible assets - interests 2,186 3,878 3,393 2,772 2,163 - ----
Property and 2,148 1,038 609 9,871 13,136 8,332
equipment 372,088 352,965 353,513 398,604 19,891 - --- - Equity holders of the 609 9,871 13,136 8,332
- parent
517 2,572 46,195 24,642 15,498 31,687 20,050 25,165
24,988 Profit for the period
8,901 8,638 8,342 5,737 97,374 - 555 484 75,401 48,381 28,520 18,891 34,459 22,213 25,165
- - - - 761,451 85,539 69,191 69,151

49,442 39,220 23,741 21,710 2,226 2,996 2,541 Statistical
605 713 - - - - - information

21,883 22,962 25,311 24,004 2,404 2,494 2,653 Earnings per share
(EPS) - basic
460k 246k 155k 317k 200k 250k 6k 99k 131k 83k

1,386,416 1,053,523 937,564 941,919 92,857 75,902 75,671

Equity and liabilities 5,025 5,000 5,000 5,000 5,000 5,025 5,000 5,000 5,000 5,000
Share capital 177,035 132,102 118,726 111,021 92,888 87,629 67,970 67,360 67,990 66,846
Reserves
Non-controlling 3,158 3,696 5,241 4,223 3,321 - - - - -
interest
Derivative liabilities 2,592 11,788 383 2,677 1,085 - ----
Trading liabilities 62,449 5,325 24,101 85,283 66,960 - ----
Deposits from banks 61,721 53,766 95,446 59,121 51,686 - ----
Deposits from 753,642 560,969 493,513 494,935 416,352 - ----
customers
Other borrowings 74,892 96,037 81,107 70,151 48,764 - 16,404 - - -
Subordinated debt 29,046 27,964 23,699 22,973 6,399 - - - - -
Current tax liabilities 12,240 9,508 7,681 157 60 129 2
Deferred tax liabilities 8,727 9,847 256 - 68
Provisions & other 120 47 120 111 61,059 4,563 9 3,482 2,552 3,553
liabilities 204,496 147,321
81,501 76,577 761,451 97,374 3,406
1,386,416 1,053,523
937,564 941,919 92,857 75,902 75,671 75,401

Acceptances
and guarantees 153,377 54,143 49,973 65,563 44,615 - - - - -

249

The skills to

in the face Other information
of challenges
250 Management team
Change is inevitable, and often looked at as a 254 Branch network
negative, when Stanbic IBTC will always see it 258 Contact information
as an opportunity.
It is during testing times that we can show true
leadership, discover new solutions and chart fresh
courses of action. It is the problems that we face
that produce better practices and directions for
our customers.

This is what drives us at Stanbic IBTC

250 Other information Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 251

Management team*

Duke Abanum Jumoke Adejumobi Adeniyi Adeleye Shuaib Audu Yomi Balogun Kobby Bentsi-Enchill
Head, Operational Risk Head, Financial Institutions Executive Director, Chief Executive, Stanbic IBTC Head, Global Markets Sales Executive Director,
Coverage Stanbic IBTC Capital Limited Investments Limited Stanbic IBTC Capital Limited

Emmanuel Aihevba Adewale Aina Pat Ajewole Funso Akere Sola Carrena Bunmi Dayo-Olagunju Olu Delano Steve Elusope
Head, Lagos Island Zone Head, Human Capital Service Chief Executive, Stanbic IBTC Chief Executive, Stanbic IBTC Head, Financial Advisory Chief Executive, Stanbic IBTC Head, Client Coverage Executive Director, Stanbic IBTC
Bureau de Change Limited Capital Limited Asset Management Limited Pension Managers Limited

Kunle Akinbowale Oyinda Akinyemi Inwang Akpan Abiodun Gbadamosi Anslem Igbo
Head, Personal & Business Head, Equity Capital Markets Head, Transactional Products Head, PBB & IT Audit Chief Executive, Stanbic IBTC
Banking Operations & Services Insurance Brokers Limited

*Arranged alphabetically

252 Other information Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 253

Management team*

Busola Jejelowo Iretiola Lawal Babatunde Majiyagbe Matthew Onifade Benjamin Osho Remy Osuagwu
Head, Wealth & Investment Head, Personal & Business Executive Director, Stanbic IBTC Head, South West Zone Head, Personal & Head, Business Banking
Coverage Banking Products Nominees Limited Business Banking Credit

Binta Max-Gbinije Babalola Obilana Titi Ogungbesan Nkolika Okoli Olorundare Otitoju Adebanjo Otukomaya Ladi Oyefuga Akeem Oyewale
Chief Executive, Stanbic IBTC Executive Director, Stanbic IBTC Chief Executive, Stanbic IBTC Head, Personal Banking Head, Global Markets Trading Head, Lagos Mainland Zone Head, Market Risk Chief Executive, Stanbic IBTC
Trustees Limited Asset Management Limited Stockbrokers Limited Nominees Limited

Bunmi Olarinoye Dolu Olugbenjo Bayo Olujobi Temitope Popoola Oladele Sotubo Joyce Uredi
Executive Director, Stanbic IBTC Head, Diversified Lending Head, Corporate & Investment Head, Corporate & Investment Executive Director, Stanbic IBTC Head, Customer Channels
Stockbrokers Limited and Leverage Finance Banking Finance Banking Human Capital Pension Managers Limited

*Arranged alphabetically

254 Other information Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 255

Stanbic IBTC Bank Branch network

Lagos Island region Lagos Mainland region North Central region

1. Idejo 15. Lekki Admiralty Branch 1. O ba Akran 18. Akoka 1. Grand Tower Mall Branch 16. B auchi
Plot 1712, Adeola Odeku, 1, Babatunde Masha Street, Lekki 20, Oba Akran Avenue, Ikeja 100, St. Finbarrs Road, Akoka Shop 9/10, Apo Mall, Abuja 16, Yandoka Road, Bauchi,
Victoria Island, Lagos Admiralty Way, Lekki Phase 1, Lagos Bauchi State
2. O gba 19. A guda 2. Utako Branch
2. A wolowo Road Branch 85, 16. Afribank Street Branch 32, Ijaye Road, Ogba 1/3, Enitan Street, Aguda 37, Ekukinam Street, Opp. ABC 17. Jos
Awolowo Road, Ikoyi Lagos Churchgate Building: Pc 30, Transport, Utako, Abuja 34, Ahmadu Bello Way, Jos
Churchgate Street, Victoria Island, 3. E gbeda 20. Shomolu
3. Idumagbo Branch Lagos 38, Shasha Road, Egba 22, Market Street, Shomolu 3. Maitama Branch 18. Nyanya
61a, Idumagbo Avenue, Lagos Island Plot 2777, Aguiyi Ironsi Way, Maitama Bomma Plaza, Sharp Corner, Opposite
17. L agos Service Centre 4. Agege 21. Ladipo Mushin Abuja The Young Shall Grow Park, Mararaba,
4. B road Street Branch Plot 1321, Karimu Kotun Street, 75, Old Abeokuta Road 103, Ladipo Street, Mushin, Lagos Abuja-Keffi Road, Nasarawa State.
143/145, Broad Street, Lagos Victoria Island, Lagos 4. A buja Service Centre
5. Oko Oba 22. Gbagada 75, Ralph Sodeinde Street, CBD, Abuja 19. Minna
5. O ke Arin Mini Branch 18. Igando Branch 327, Old Abeokuta Road 15, Diya Street, Ifako, Gbagada Beside Central Mosque, Bosso Road,
120, Alakoro Street, Marina, 51, Lasu-Iba Expressway, Igando, 5. Abuja NNPC Minna
Lagos Island, Lagos Lagos. 6. Ejigbo 23. A llen Avenue Hebert Macaulay Way,
91, Isolo Ikotun Road 31, Allen Avenue, Ikeja Central Business District, Abuja 20. Kontagora
6. Oyingbo Mini Branch 19. A laba Branch Opposite Hamson Nig Ltd, Lagos
7, Coates Street, Oyingbo, Lagos H48/49, Alaba Intl Mkt, Ojo – Lagos 7. Ikotun 24. NAHCO 6. Wuse II, Abuja Kaduna Road, Kontagora, Niger State
45, Idimu Road, Ikotun, Lagos State NAHCO complex, Off MMIA Plot 1387, Aminu Kano Crescent,
7. Herbert Macaulay Branch 20. Balogun Business Association Branch Wuse 11, Abuja 21. M araraba
220, Herbert Macaulay Way, Yaba Plaza 3a, Portion C, Opposite Sokoto 8. A bule Egba 25. Toyin Street A1, Kwad Mall, Adjacent Mama Cass
Plaza BBA, Trade Fair Complex 633, Lagos Abeokuta Road 36A, Toyin Street Ikeja 7. N igeria Immigration Service Eatery, Abuja -Keffi Road, Mararaba,
8. Head Office Branch Nigeria Immigrations H/Qtrs, Sauka Air Nasarawa State
IBTC Place, Walter Carrington Crescent, 21. Festac Branch 9. Ipaja 26. O pebi Port Rd, Abuja
Victoria Island, Lagos Gacoun Plaza, 23 Road, 142, Ipaja Road 43, Opebi Road, Ikeja 22. Makurdi
Opp. K’ Close, Festac Town, Lagos 8. A hmadu Bello Centre 5, Ogiri Oko Road, Makurdi
9. A detokunbo Ademola Branch 10. Oshodi 27. I korodu Town 1049 Ahmadu Bello Way Garki Abuja
76, Adetokunbo Ademola Street, 22. N igerian Ports Authority Branch Plot 14, Oshodi Apapa Express way 108, Lagos Road, Ikorodu 23. Lafia
Victoria Island, Lagos Accounts Block, Nig. Ports Authority, 9. D eidei Plot 1, Opposite Fatima House,
Wharf Road, Apapa, Lagos 11. Alausa 28. Ketu Shop W-9, Dei-Dei International Jos Road, Lafia.
10. A jah Mini Branch IPML Avenue, Alausa, Ikeja 463, Ikorodu Road Building Material Market, Dei-Dei,
4a, Megawaves Plaza, Addo Road, 23. Tincan Island Branch Abuja 24. Jalingo
Ajah Lagos 8, Apapa Oshodi Express Way, 12. O kota 29. M aryland 22, Hammaruwa Way, Jalingo
Coconut B/Stop, Apapa, Lagos. 1, Alhaji Adenekan Street 10, Mobolaji Bank Anthony Way, Mary 10. A buja Garki Area 3
11. Ajose Adeogun Branch land Infinity House 11, Kaura Namoda 25. G boko
Plot 290e, Ajose Adeogun Street, 24. T rade Fair Branch 13. Surulere Street, Off Faskari Crescent, Area 3 37, Captain Downs Street, Adekaa,
Victoria Island, Lagos Hall 2, Olusegun Obasanjo Hall, 84, Adeniran Ogunsanya 30. O solo Way Gboko
Aspamda Plaza, Tradefair Lagos 61, Osolo Way 11. Garki Model
12. Ikota Branch 14. Ojuwoye Plot 2, Ladoke Akintola Boulevard, 26. O tukpo
194 Road 5, Ikota Shopping Complex, 25. Warehouse Road, Apapa Branch 214, Agege Motor Road, Ojuwoye 31. Ojodu Garki II, Abuja Enugu - Makurdi Road, Otukpo
VGC, Lagos 10/12, Warehouse Road, Apapa, Lagos 102, Isheri Road, Ojodu
15. Lawanson 12. Gwagwalada 27. Yola
13. L ekki 1 Branch 26. Yinka Folawiyo Plaza, Apapa Branch 35, Lawanson Road, Surulere 32. O gudu Plot 415, Teaching Hospital Road, 1, Mohammed Mustapha Way
1, Bis Way, Off Lekki-Epe Expressway, 38, Warehouse Road, Apapa, Lagos 54, Ogudu Road, Ogudu Gwagwalada, Abuja
Lekki, Lagos 16. Tejuosho 28. M aiduguri
27. S atellite Town 77, Ojuelegba Road 33. I keja City Mall 13. Kubwa 35, Sir Kashim Ibrahim Way, Maiduguri
14. L ekki 2 Branch Plot 389, Old Ojo Road, Abule Ado, Shop L55, Ikeja City Mall Plot 71/72, Gado Nasko Way, Kubwa,
G & M Plaza, Km 18, Lekki–Epe Express Satellite Town, Lagos 17. Orile Coker Abuja 29. D amaturu
Way, Igbo-Efon, Lekki, Lagos 104, Market Street, Odunade Market Plot 591a, Njiwaji Layout, Damaturu,
14. S uleja Yobe State.
Opposite Division ‘A’ Police Station,
Minna Road, Suleja, Niger State 30. Gombe
No 22, Biu Road Gombe
15. Lokoja
Opp. Kogi State Specialist Hospital, 31. Mautech
Lokoja Modibbo Adama University of
Technology Yola

256 Other information Stanbic IBTC Annual group financial statements for the year ended 31 December 2017 Overview Business review Annual report & financial statements Other information 257

Stanbic IBTC Bank Branch network

North West region South South region South East region South West region

1. K aduna Main 18. Dutse 1. Trans Amadi 2 1. Ariaria 1. O yo 16. S ango Otta 2
14, Ahmadu Bello Way, Kaduna 14/15 Sani Abacha Way, Dutse 87, Trans Amadi Industrial Layout 189, Faulks Road, Aba Oyo/Ogbomoso Road, Oyo Town Km 38, Abeokuta Expressway,
Sango Otta, Ogun State
2. K aduna Central 19. K antin Kwari 2. T rans-Amadi 1 2. Umuahia 2. Agodi Gate
1, Bayajidda Road No 71a Fagge Takudu Kantin Kwari 7, Trans-Amadi Road,Port Harcourt 2, Market Road, By Library Avenue, Inaolaji Business Complex, Agodi Gate, 17. Shagamu
Umuahia Ibadan 167, Akarigbo Road, Shagamu,
3. Kachia Road 20. Bello Road 3. Port Harcourt Service Center Ogun State
A7, Kachia Road 31/32 Bello Road 133a Olu Obasanjo Road, Port 3. A ba Main 3. U I Road
Harcourt. 7, Factory Road, Aba, Abia State UI Road, Sayora Building, 18. Sapon
4. Kaduna Nnpc 21. Kano Service Centre Opposite UI 2nd Gate, Ibadan 2a, Lantoro Road, Isale-Ake, Abeokuta
Km 16, Kachia Road, Kaduna. 3 Bank Road 4. Eleme Branch 4. Sapele Road
Iepcl Eleme, Port Harcourt, 131a, Sapele Road, Benin City, 4. I badan Main 19. R ing Road
5. Kasuwa Barci 22. S hauchi Rivers State Edo State UCH-Secretariat Road, 1b, Moshood Abiola Road, Ring Road,
Ah6, Gamagira Road, T/Wada Kaduna Umma Bayero House Shauchi By Total Garden, Ibadan Ibadan, Oyo State
5. Aba Road 5. New Benin
6. Kawo Mando 23. Hotoro 171, Aba Road, Port Harcourt 174, Upper Mission Road, 5. Iwo Road 20. S ango Otta 1
Jaas Plaza, Zaria Road, Kawo, Kaduna Maiduguri Road Hotoro By Constain Junction, Benin City Baloon House, Iwo Road, Ibadan 101, Idi Iroko Otta Road, Sango Otta,
6. P ort Harcourt Airport Ogun State
7. Sabon Tasha Phc Int’l Airport, Omagwa 6. B enin Main 6. Iwo Town
32, Kachia Road, Sabon Tasha Kaduna 71, Akpapava Street, Benin 147, Ejigbo Road, Araromi - Sabo, 21. I jebu Ode
7. A rtillery Iwo Town 58, Ibadan Road, Ijebu-Ode, Ogun
8. Samaru 234, Aba Road, Port Harcourt 7. Uniben
2, Sokoto Road, Samaru, Zaria, Kaduna Bank Road, University of Benin, 7. Iyana Church 22. I fe
8. Y enagoa Ugbowo Campus Ibitola Plaza, Iyana Church, Ibadan, 5, Obalufon-Lagere Road,
9. S abon Gari Zaria 623, Melford Okilo Road, Yenagoa Oyo State Lagere Junction, Lle-lfe
7a, Aminu Road, Sabon Gari, Zaria 8. Awka
9. Oyigbo 49, Zik Avenue Awka 8. Saki 23. I lesha
10. Zaria City Kilometre 37, Aba-Port Harcourt Beside Saki West Local Government 1a198, Osogbo Road, Ishokun,
90, Angwan Mallam Sule Bakin Express Road, Oyigbo, Port Harcourt, 9. O nitsha Main Secretariat, Sango - Ajegunle Road Ilesha, Osun State
Kasuwa, Zaria City Rivers State 13, Bright Street, Main Market, Saki, Oyo State
Onitsha 24. I lorin
11. K atsina 10. C alabar 9. N ew Gbagi 11, Unity Road (Amosu House)
175, Kurfi House, IBB Way, Katsina 71, Marian Road, Calabar, 10. Onitsha Head Bridge Bashmus and Ayimur Plaza,
Cross River State 56, Port Harcourt Road, Onitsha Opp Texaco Station, Gbagi, Ibadan 25. Ojatuntun
12. G usau A171, Abdulazeez Attah Road,
68, Ahmadu Bello Way 11. U yo 11. Enugu 10. A leshinloye Surulere, Ilorin
65, Nwaniba Road, Uyo 1 Garden Avenue, Besides EEDC Eleyele Road, Nigerian Army Housing
13. Sokoto Regional Office, Okpara Avenue, Scheme, Ibadan 26. K wara Mall
68, Maiduguri Road 12. E ket Branch Enugu 11, Unity Road, Ilorin, Kwara State
2, Grace Bill Road, Eket Town 11. Mokola
14. Kebbi Branch 12. A bakaliki 18b, Oyo Road, Mokola, Ibadan 27. Ogbomoso
68, Ahmadu Bello Way, Birnin Kebbi 13. Whatt Market 10, Old Ogoja Road, Abakaliki Ilorin-Ogbomoso Road, Sabo Area,
45, Bedwell Street, Calabar 12. Gbagi Ogbomoso Town
15. Zaria Main 13. Polomall Aje House Annexe, Opposite Obisesan
9, Kaduna Road, PZ Zaria 14. Airport Road Warri Shop 56, Polo Park Mall, Hall, Lebanon Street, Old Gbagi, 28. A do Ekiti
23, Ogunu Road, Warri Abakaliki Road, Enugu Ibadan Ado-lyin Express Road, Ado Ekiti,
16. Bayero University Ekiti State
Gwarzo Road, Bayero University New 15. W arri Main 14. Owerri 13. Abeokuta
Campus, Kano 98, Effurun/Sapele Road, Effurun, 81, Okigwe Road, Owerri, Imo State. 2a, Lantoro Road, Isale-Ake, Abeokuta 29. Ondo
Delta State 62, Yaba Road, Ondo Town,
17. Sabon Gari Kano 15. A ba Market 14. Agbara Ondo State
1, Galadima Road Sabon Gari-Kano, 16. Olu Obasanjo 7, Duru Street, Off Cemetery Road, Agbara Estate Shopping Mall,
Kano 58, Olu Obasanjo Road, Port Harcourt Aba Agbara Industrial Estate, Agbara 30. Akure
GNI Building, Off Old Ado/Owo Road,
16. A saba 15. Challenge Akure
206, Nnebisi Road, Asaba 127, Orita Challenge, Ibadan,
Oyo State 31. Oshogbo
201, Gbogan – Ibadan Road, Osogbo,
Osun State

258 Other information Stanbic IBTC Annual group financial statements for the year ended 31 December 2017

Contact information

Idris Toriola Adekunle Adedeji Chidi Okezie
Head, Investor Relations & Strategy Chief Financial Officer Company Secretary

T: +234 1 4228501 T: T: +234 1 4228767 T: +234 1 4228695
E: [email protected] E: [email protected] E: [email protected]

Registered address

I.B.T.C. Place

Walter Carrington Crescent
P.O. Box 71707
Victoria Island, Lagos
Nigeria

E: [email protected]

Affix E-DIVIDEND MANDATE MANAGEMENT SYSTEM
Current
Passport (E-DMMS)

(To be stamped by Bankers)

Write your name at the back of
your passport photograph

Instruction Only Clearing Banks are acceptable

Please complete all section of this form to make it eligible for processing and return to the address below

The Registrar,
First Registrars & Investor Services Ltd.
2,Abebe Village Road,Iganmu
P. M. B. 12692 Lagos. Nigeria.

I\We hereby request that henceforth, all my\our dividend Payment(s) due to me\us from my\our holdings in all
the companies ticked at the right hand column be credited directly to my \ our bank detailed below:

Bank Verification Number

Bank Name
Bank Branch
Bank Address

Bank Account Number

Account Opening Date

Account Type (Tick) Current Savings

Shareholder Account Informa on

Surname First Name Other Names

Address :

City State Country
Previous Address (If any)
CHN (If any) Email Address
Mobile Telephone 1 Mobile Telephone 2

Signature(s) Joint\Company’s Signatories Company’s Seal

Authorised Signature of Banker Authorised Stamp of Banker

First Registrars & Investor Services Limited
...connecting you to your wealth.

website:www.firstregistrarsnigeria.com; E-mail: info@firstregistrarsnigeria.com

Affix E-DIVIDEND
Current
Passport E-DIVIDEND ACTIVATION FORM

(To be stamped by Bankers)

Write your name at the back of
your passport photograph

Instruction Only Clearing Banks are acceptable

Please complete all section of this form to make it eligible for processing and return to the address below

The Registrar,
First Registrars & Investor Services Ltd.
2,Abebe Village Road,Iganmu
P. M. B. 12692 Lagos. Nigeria.

I\We hereby request that henceforth, all my\our dividend Payment(s) due to me\us from my\our holdings in all
the companies ticked at the right hand column be credited directly to my \ our bank detailed below:

Bank Verification Number

Bank Name
Bank Branch
Bank Address

Bank Account Number

Account Opening Date

Account Type (Tick) Current Savings

Shareholder Account Informa on

Surname First Name Other Names

Address :

City State Country
Previous Address (If any)
CHN (If any) Email Address
Mobile Telephone 1 Mobile Telephone 2

Signature(s) Joint\Company’s Signatories Company’s Seal

Authorised Signature of Banker Authorised Stamp of Banker

First Registrars & Investor Services Limited
...connecting you to your wealth.

website:www.firstregistrarsnigeria.com; E-mail: info@firstregistrarsnigeria.com

E-BONUS

e-BONUS FORM

TICK NAME OF COMPANY ACCOUNT NO.

ABC TRANSPORT PLC

ACAP CANARY GROWTH FUND

Instruction AFRICAN DEVELOPMENT BANK BOND
AFRICAN PAINTS PLC

Please complete all sections of this form to make it eligible for processing ANCHOR FUND
and return to the address below: ARM AGGRESSIVE GROWTH FUND
ARM DISCOVERY FUND

The Registrar, ARM ETHICAL FUND
First Registrars & Investor Services Ltd. ASO-SAVINGS AND LOANS PLC
AUSTIN LAZ AND COMPANY PLC

2,Abebe Village Road, Iganmu BANK PHB PLC (NOW KEYSTONE BANK LIMITED)
BAYELSA STATE BOND

P. M. B. 12692, BCN PLC-MARKETING COMPANY
Lagos. Nigeria. BEDROCK FUND
CADBURY NIGERIA PLC

Please credit my account at Central Securities Clearing Systems CHAMS PLC
Limited (CSCS) with all subsequent allotments and bonuses due to
me from holdings in the companies listed. COSTAIN WEST AFRICA PLC
CROSS RIVERS STATE BOND

DAAR COMMUNICATIONS PLC
DEAP CAPITAL MANAGEMENT & TRUST PLC

DELTA STATE GOVT BOND

Shareholder Account Information DV BALANCED FUND
EDO STATE BOND
Surname First Name Other Names FAMAD NIGERIA PLC

FBN FIXED INCOME FUND

FBN HERITAGE FUND

Address : FBN HOLDINGS PLC

FBN MONEY MARKET FUND

FIDELITY BANK PLC

FIDELITY BOND
FORTIS MICROFINANCE BANK PLC

City State Country FRIESLANDCAMPINA WAMCO NIGERIA PLC
HONEYWELL FLOUR MILLS PLC

JULI PLC

CHN (If any) LAGOS STATE BOND SERIES 2
LEARN AFRICA PLC
NIGERIA POLICE MORTGAGE BANK PLC

NIGERIAN BREWERIES PLC

OANDO PLC

Mobile Telephone 1 Mobile Telephone 2 ONDO STATE BOND
OYO STATE BOND
PARTNERSHIP INVESTMENT CO.PLC

Email Address PRESCO PLC

PRESTIGE ASSURANCE PLC
PZ-CUSSONS NIGERIA PLC
RAK UNITY PETROLEUM PLC

Signature(s) Company’s Seal REDEEMED GLOBAL MEDIA COMPANY
SIM CAPITAL ALLIANCE VALUE FUND

SIAM L PENSION ETF 40

STACO INSURANCE PLC

Joint\Company’s Signatories STANBIC IBTC DOLLAR FUND
STANBIC IBTC BALANCED FUND

STANBIC IBTC BANK PLC FLOATING RATE& FIXED
RATE SUBORDINATED UNSECURED NOTES

CSCS Details STANBIC IBTC BOND FUND
STANBIC IBTC ETF 30 FUND

STANBIC IBTC ETHICAL FUND

Stockbroker STANBIC IBTC GUARANTEED INCOME FUND
STANBIC IBTC HOLDINGS PLC

CClearing House Number: STANBIC IBTC MONEY MARKET FUND
STANBIC IBTC NIGERIAN EQUITY FUND

Authorised Signature and Stamp ofStockbroker STANDARD ALLIANCE INSURANCE PLC
STARCOMMS PLC

UBA FIXED RATE SUBORDINATED UNSECURED NOTES

UNION DIAGNOSTIC AND CLINICAL SERVICES PLC

UPDC REITS

VANTAGE BALANCED FUND

VANTAGE GUARANTEED INCOME FUND

WEST AFRICAN ALUMINIUM PRODUCTS (WAAP)
ZAMFARA STATE BONDS

Please attach a copy of your CSCS statement to this form as
evidence that you maintain a valid account at the CSCS.

First Registrars & Investor Services Limited
...connecting you to your wealth.

website:www.firstregistrarsnigeria.com; E-mail: [email protected]

Affix Passport FIRST DIVIDEND PLUS CARD
Photo

TICK NAME OF COMPANY ACCOUNT NO.

ABC TRANSPORT PLC

ACAP CANARY GROWTH FUND
AFRICAN DEVELOPMENT BANK BOND
AFRICAN PAINTS PLC

DATE ANCHOR FUND
ARM AGGRESSIVE GROWTH FUND
Instruction ARM DISCOVERY FUND

Please fill the form and return to the address below ARM ETHICAL FUND
ASO-SAVINGS AND LOANS PLC

The Registrar, AUSTIN LAZ AND COMPANY PLC
First Registrars & Investor Services Limited.
2, Abebe Village Road, Iganmu BANK PHB PLC (NOW KEYSTONE BANK LIMITED)
P. M. B. 12692 Lagos. Nigeria. BAYELSA STATE BOND
BCN PLC-MARKETING COMPANY
Shareholder Account Information BEDROCK FUND
CADBURY NIGERIA PLC
Surname First Name Other Names CHAMS PLC

COSTAIN WEST AFRICA PLC
CROSS RIVERS STATE BOND

Address Line 1 Country Date of Birth(DDMMYYYY) DAAR COMMUNICATIONS PLC
Address Line 2 DEAP CAPITAL MANAGEMENT & TRUST PLC
State
DELTA STATE GOVT BOND
DV BALANCED FUND
EDO STATE BOND
FAMAD NIGERIA PLC
FBN FIXED INCOME FUND
FBN HERITAGE FUND
FBN HOLDINGS PLC

Mobile Telephone FBN MONEY MARKET FUND
FIDELITY BANK PLC

FIDELITY BOND
FORTIS MICROFINANCE BANK PLC

Email Address FRIESLANDCAMPINA WAMCO NIGERIA PLC
HONEYWELL FLOUR MILLS PLC

JULI PLC

WAIVER: LAGOS STATE BOND SERIES 2
I hereby authorize FIRST REGISTRARS to issue its FirstDividend Plus Prepaid Card to me LEARN AFRICA PLC
at the rate of N600 per card (production fee). I am aware that physical dividend NIGERIA POLICE MORTGAGE BANK PLC

NIGERIAN BREWERIES PLC

warrant will not be issued to me in this regard. OANDO PLC
ONDO STATE BOND
Cards must be collected in person or by an authorised person. OYO STATE BOND
For Terms & Conditions visit our website: www.firstregistrarsnigeria.com PARTNERSHIP INVESTMENT CO.PLC
PRESCO PLC

Signing below means that you accept the Terms & Conditions written at the back of PRESTIGE ASSURANCE PLC
this form PZ-CUSSONS NIGERIA PLC

RAK UNITY PETROLEUM PLC

Signature(s) Corporate stamp/Seal REDEEMED GLOBAL MEDIA COMPANY
SIM CAPITAL ALLIANCE VALUE FUND
SIAM L PENSION ETF 40
STACO INSURANCE PLC

STANBIC IBTC DOLLAR FUND

STANBIC IBTC BALANCED FUND

Requirements: STANBIC IBTC BANK PLC FLOATING RATE& FIXED
RATE SUBORDINATED UNSECURED NOTES
* Kindly make payment for the card at any of our branches or to First Bank STANBIC IBTC BOND FUND
account number: 2018542925 and attach payment slip to the form upon submission. STANBIC IBTC ETF 30 FUND

* Submit with Utility Bill (Nepa Bill, House Rent Receipts etc ) STANBIC IBTC ETHICAL FUND
* Copy of ID Card(Drivers license, International passport, National ID.) STANBIC IBTC GUARANTEED INCOME FUND
* Affix passport photograph at top left hand corner of this form STANBIC IBTC HOLDINGS PLC
Which of our office(s) would you like to pick your e-Dividend prepaid card? Please Tick.
STANBIC IBTC MONEY MARKET FUND
STANBIC IBTC NIGERIAN EQUITY FUND
STANDARD ALLIANCE INSURANCE PLC
STARCOMMS PLC

Lagos P/H Kaduna Ibadan Enugu Abuja UBA FIXED RATE SUBORDINATED UNSECURED NOTES
UNION DIAGNOSTIC AND CLINICAL SERVICES PLC

Bank Account Details(If any) UPDC REITS
Bank Name & Branch VANTAGE BALANCED FUND
Account Number VANTAGE GUARANTEED INCOME FUND

WEST AFRICAN ALUMINIUM PRODUCTS (WAAP)
ZAMFARA STATE BONDS

OFFICAL USE ONLY:

CARD NUMBER

First Registrars & Investor Services Limited
...connecting you to your wealth.

website:www.firstregistrarsnigeria.com; E-mail: ebusiness@firstregistrarsnigeria.com

FirstDividend Plus Prepaid Card Terms and Condition

The use of your FirstDividend Plus Prepaid Card shall be subject to the the card and the card will be used at your own risk.

following terms and conditions:

13. First Bank and First Registrars reserve the right to levy fees and

1. You agree that your card shall be kept secure at all times and your personal commission, as it may deem appropriate for the use of this service by you.

identification number (PIN) will not be disclosed to any other person. You will

take reasonable care in maintaining the confidentiality of the PIN by ensuring 14. If the card becomes lost, missing or stolen, you shall promptly make a

it is known to you only. Do not Disclose your Card Number and PIN to anyone! written report at First Bank's or First Registrars' nearest branch or call

Firstcontact on 0700FIRSTCONTACT or 017349745, 018045681. You shall

2. All transactions at any channel such as Automated Teller Machine (ATM), take all necessary steps as First Bank and First Registrars may require to

POINT OF SALE (POS), and Web etc that are made/perfected by your card assist in the recovery of the card.

and with your PIN will be treated as having been authorized by you.

15. You will be liable for any loss arising from the use of the card or PIN by any

3. If any money or dividend money that may be accessed by your card is a unauthorized person up to two working days after the First Bank or First

joint account or an account with more than one signatory, all transactions at Registrars receive written notification of loss of the card.

any channel that are made by you card and with your PIN will be treated as

authorized by you. First Bank of Nigeria Plc and First Registrars Nigeria 16. Where the card becomes lost, missing or stolen, or the PIN is forgotten, you

Limited accepts no liability if it is found that the transaction was carried out shall be required to obtain a new card from us at a prescribed fee for the

without authorization. continuation of the services provided under this agreement.

4. In the unlikely event that your card can access any dividend money that 17. Your rights under this agreement are personal to you and shall NOT be
does not belong to you, it shall be your duty to report such immediately to the assigned.
nearest branch of First Registrars for the access to be removed.
18. You acknowledge and agree that this Agreement is subject to change at
5. In the event that your card is used to carry out transactions on an account any time without any prior notice to you.
or dividend money that does not belong to you, such transactions shall be
deemed authorized by you and the bank/First Registrars shall recover fully 19. Either party may terminate this Agreement with seven days written notice
all sum so collected by you together with charges. to the other party PROVIDED HOWEVER that First Bank or First Registrars
may terminate this Agreement with or without notice if the circumstance so
6. Transactions done by Card and Pin shall not exceed daily limit authorized warrants.
by the regulatory authorities (Central Bank of Nigeria) for ATM, POS, Mobile
and web transactions. 20. Cardholders must ensure that their cards are stored properly to prevent
any damage to the chip as a fall back to magnetic stripe can be caused by the
7. Withdrawal of cash at the ATM shall be deemed to have been concluded at terminals inability to read the chip if it is damaged. The card holder shall bear
the point when the ATM dispenses cash to you through the cash tray. First the liability if there is a fraud as a result of a fallback if it is found that the fallback
Registrars accepts no liability whatsoever for any subsequent event resulted from a damaged chip.
occurring after cash has been so dispensed.
21. You also agree to bear every transaction costs that may be applicable to the
8. The card is the property of First Bank/First Registrars and may be usage of the card on all transaction channels. N20 transaction charges for
withdrawn at anytime. It must be returned to us by you on demand. You also cash withdrawals on FirstBank ATMs and N75 per transaction on cash
agree that an ATM may impound your card at anytime if the circumstances so withdrawals done on other banks' ATMs (or rate as may be applicable by the
warrants. regulator).

9. You agree that the card shall expire on the expiry date indicated on the 22. We may change the provisions of these terms and conditions, including our
prepaid card and may at the discretion of First Registrars be renewed upon charges without recourse or notice to you.
expiration.
23. Should you require to exceed the maximum load limit of N250,000.00 on
10. The First Bank and First Registrars will not be liable for any machine your card, an indemnity form instructing same shall be requested from First
malfunction, strike, or dispute or any other circumstances affecting the use of Registrars Nigeria Limited, duly completed and signed by you and returned to
the card where such matters are not within the direct control of First Bank and First Registrars.
First Registrars.
24. This card is issued to you based on the information given to FirstRegistrars.
11. You shall be liable for all losses arising from use of the card by any person You shall be liable for all claims, actions or proceeding that may arise in the
obtaining possession of it with your consent or due to your negligence. event that any of the information given to obtain this card or use the card are
12. You covenant and undertake that you shall be liable for all transactions on discovered to be false or misleading.

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